85% of Firms say US is in Recession

18 April 2008

EuroFinance today announced the results of a comprehensive survey into the key economic issues concerning companies. The survey of over 500 CFOs and senior finance professionals from some of America’s largest companies, shows an overwhelming belief that the current outlook for the US economy is bleak, with things looking set to worsen.

The survey was conducted on the first day of the International Cash and Treasury Management Conference, Miami, on the morning of the 14th April. A troubled state of the US economy was clearly demonstrated by the following results:

1. Do you think the US economy is now in recession?

- 85% Yes
- 15% No

2. Do you think things will get worse in the economy?

- 63% Yes
- 37% No

3. Are you finding it harder to raise money for your business than before?

- 52% Yes
- 45% No

"Clearly companies overwhelmingly believe that the United States is in recession and that we can expect worse to come," said Carolyn Meier, Managing Director, EuroFinance. "Companies are still holding significant cash, having raised funds while rates were historically low and freely available, so we are not surprised to see that almost 50% of companies surveyed are not finding it difficult to raise money. But what we are seeing from our research, in both Europe and the USA, is that lesser rated companies having to refinance in 2008 are finding the credit environment sticky and more expensive,” Meier commented.

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