The majority of chief financial officers expect the COVID-19 pandemic to hit their businesses, cut into revenue and profit and spur a recession, according to a survey by PwC.
PwC's survey polled 50 finance leaders from the US and Mexico between March 9 and March 11. The findings are a notable marker as the novel coronavirus pandemic hits businesses, disrupts supply chains and forces remote work and telecommuting as well as office closures. PwC said it will track COVID-19 finance sentiment every two weeks.
IT spending estimates have already been cut. On the bright side, 90% of CFOs are optimistic they can return to normal business operations quickly if the pandemic stops soon.
The high-level findings include:
- All of the finance experts say their business is experiencing some novel coronavirus impact and 54% of respondents said there is the potential for a significant impact.
- 58% of CFOs expect a decrease in revenue and/or profits.
- 80% of respondents cite a global recession as one of their top three concerns with 48% citing a decrease in consumer confidence and consumption followed by financial impact and employee productivity.
- 34% say the impact has been limited to specific regions.
- 86% of finance leaders say they are considering financial actions due to COVID-19.
- 30% are considering supply chain changes.