ATLANTA and CHERRY HILL, N.J., March 13, 2019 /PRNewswire/ -- In 2018, the vast
majority of organizations reported being highly optimistic about
the overall health of the economy as well as the fiscal health of
their individual companies in the first Treasury Perspectives
Survey. This year, optimism has waned as rising interest rates,
gridlock in Washington, D.C., and
increased regulatory oversight have all negatively impacted
practitioners' viewpoints, finds a new survey released today by
Strategic Treasurer and TD Bank, America's Most Convenient
Bank®. The survey polled treasury and finance
professionals on their views regarding the economy, technology,
industry innovation and regulation to better understand top
challenges and opportunities in the marketplace.
Among the top findings of the 2019 Treasury Perspectives
Survey:
- North American Challenges Center on Monetary and Regulatory
Policy: When asked to select their top worries about doing
business in North America,
corporate respondents selected rising interest rates as their
primary concern (56 percent), followed by gridlock in D.C. (38
percent) and an increasingly complex regulatory environment (34
percent). Fears of escalating trade conflict and a near-term
recession rounded out the top 5 concerns.
- Companies' Optimism Declined: Ten percent fewer
organizations expect the GDP of their headquarter country to
increase in 2019 than they did in 2018. In addition, 7 percent
fewer businesses reported optimism in their organization's outlook
than last year. These year-over-year swings show that organizations
are increasingly wary of an economic slowdown following years of
low rates and high growth.
- Tax Reform has Limited Impact: Although 42 percent
of firms in the 2018 Treasury Perspectives Survey expected U.S. tax
reform to provide a significant benefit, the reality has been much
different. In fact, nearly half (44 percent) of the 2019
survey respondents stated tax reform has had no significant impact
on their business. Only 15 percent of the 2019 respondents
increased total income, 12 percent improved financial performance
and 10 percent brought funds back to the U.S.
- Trade Conflict Makes Ripples, not Waves: Over the
past year and especially within the last five to six months, there
has been significant media coverage about trade conflict
(particularly with China) and its
potential impact on the U.S. economy. While the future of
trade agreements still remains unclear, the majority of
organizations (65 percent) stated that trade conflict has not had
any significant impact on their business thus far. In total, only
18 percent have found it more expensive to conduct business in the
past 12 months; 16 percent have paid higher prices on goods; and 10
percent increased the price of their own goods.
- Regulatory Pressure is High and Expected to
Climb: Since 2008, the level of regulatory oversight
levied against corporates and banks has increased dramatically,
both in the United States and
abroad. As a result of this heightened regulatory environment, 51
percent of companies view current levels of regulatory oversight as
higher than historical norms, while 2 percent see current levels as
lower. Fifty percent of survey respondents also expect continued
increases to the scope and reach of regulations over the next one
to two years, while 7 percent expect a decrease.
Although their overall 2019 outlook is less positive than in
2018, it is worth noting that businesses stated that they still
plan to invest in their operations. When asked about spending
priorities over the next two years, 44 percent of respondents with
revenues of more than $1 billion said
they would undertake a major acquisition, 47 percent will invest in
financial technology upgrades and 29 percent plan to launch a major
new product or service. Smaller businesses (revenues less than
$1 billion) are hesitant to outlay
cash, and are four times less likely to spend in any category
during the same time period.
The 2019 Treasury Perspectives Survey was sponsored by TD Bank
and conducted by Strategic Treasurer. A copy of the complete survey
data and an infographic are available here. There were
approximately 340 respondents, consisting primarily of treasury
professionals and corporate bankers from North America and Europe.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is
one of the 10 largest banks in the U.S., providing more than 9
million customers with a full range of retail, small business and
commercial banking products and services at more than 1,200
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD
Wealth®, and vehicle financing and dealer commercial
services through TD Auto Finance. TD Bank is headquartered in
Cherry Hill, N.J. To learn more,
visit www.td.com/us. Find TD Bank on Facebook
at www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com/us.
About Strategic Treasurer
Strategic Treasurer provides
consulting services for treasury management, security, technology,
and compliance. Since 2004, corporate clients, banks, and fintech
providers throughout the world have relied on their advisory
services which are backed by a deep awareness of current practices,
plans, and perceptions through their annual surveys and decades of
treasury experience. The mission of Strategic Treasurer is to
elevate and enhance the practice of treasury by advising individual
clients and informing the industry at large. Headquartered in
Atlanta with consultants based out
of Philadelphia, Cleveland, and Washington DC, Strategic Treasurer guides
treasury and finance professionals through real-world,
mission-critical issues that organizations face today. To learn
more, visit strategictreasurer.com.
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SOURCE TD Bank; Strategic Treasurer