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The Resource for the Global Finance Profession

AFP Corporate Cash Indicators®

July 2014 Survey Results: 
U.S. businesses built short-term corporate cash balances at a quicker pace during the second quarter relative to the first three months of 2014. This is according to the July 2014 AFP Corporate Cash Indicators®,  a quarterly metric tracking recent and anticipated changes in U.S. corporate cash balances.

The latest readings from the AFP CCI™ fin dthe pace of corporate cash accumulation rebounding strongly during the second quarter of 2014 on both quarter-to-quarter and year-to-year basis, with the latter metric up sharp a 15 points. But the faster pace of cash accumulation may be short lived as the indicator measuring the expected change of cash holdings during the third quarter drops two points to a reading of +10.

At the same time, organizations are less aggressive with how they are investing their cash holdings as the metric shed eight points during the quarter to a reading of +2. 

About the AFP Corporate Cash Indicators®

The AFP Corporate Cash Indicators™ (AFP CCI™), underwritten by State Street Global Advisors, provide treasury and finance professionals, policymakers and market analysts with timely data on a determinant of economic activity: corporate cash levels. The AFP CCI™ is created and maintained by the Association for Financial Professionals (AFP), a professional society that serves corporate finance departments globally.

AFP’s research department began collecting quarterly data in January 2011. The next AFP CCI™ report will be published in the October 27, 2014 issue of AFP EconWatch newsletter.

Survey Methodology

On the opening days of each quarter, AFP asks select members whether their short-term investment holdings increased or decreased in the past year and past quarter; whether investment selections for those corporate cash holdings changed in the last quarter; and whether they expect these cash holdings to increase or decrease in the coming quarter. The survey goes to people whose day-to-day job is manage their companies’ cash and short-term investment portfolios and are fully aware of their organizations’ cash strategies.

For consistency, AFP asks the same questions each quarter. Companies’ decisions to grow/shrink the size of their cash and short-term investment portfolios reflect their business outlook and direction, making these decisions leading indicators of economic activity.

AFP Corporate Cash Indicators® is a trademark of the Association for Financial Professionals. All AFP Corporate Cash Indicators® survey questions, data and reports are the copyrights of the Association for Financial Professionals, and all rights are reserved. For information about publishing the AFP CCI™ on your site, please contact pr@afponline.org.

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