AFP Corporate Cash Indicators™
Confidence among U.S. businesses further softened during the
third quarter, impacted by both uneven economic growth and
political uncertainty in Washington surrounding the Federal budget
and debt limit. This is according to the October 2013 AFP Corporate Cash Indicators™, a quarterly study that measures recent and anticipated changes in U.S. corporate cash balances.
The latest readings from AFP CCI™ reveal that a greater percentage of companies increased cash and short-term investment balances during the third quarter of the year than in any other quarter in 2013 (both quarter-to-quarter and year-to-year). Expectations to increase cash during the third quarter softened, however, as the index shed eight points to a reading of +6, signaling a moderating level of concern about future business conditions at some organizations.
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 January 27, 2014 issue of AFP EconWatch newsletter.
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 cash holdings changed in the last quarter; and whether they expect 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 CCI on your site, please contact email@example.com.