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.
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 firstname.lastname@example.org.