Michiana-area CFOs’ Optimism Holds Steady in 1st Quarter

The 1st quarter 2017 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting firm of Kruggel Lawton CPAs, declined slightly from the 4th quarter of 2016 by just over one percent. The overall BBI for the 1st quarter was 57.59, out of a maximum possible score of 100, down slightly from 58.28 for the 4th quarter of 2016. However, company outlook or optimism remained strong among participating chief financial officers (CFOs).

Noteworthy survey results include:

• The overall score drifted down slightly for the third straight quarter in a row
• CFO optimism remained strong, with little change from the prior quarter; the score for CFO optimism increased substantially in Q3 2016 and has remained substantially higher than the other three survey metrics
• Compared to the 4th quarter of 2016, the scores for revenue and employment levels both declined, although neither very significantly
• The score for profitability bounced upward from last quarter, reversing a substantial Q3-to-Q4 decline

Kruggel Lawton conducts this confidential survey of CFOs in for-profit companies in the Michiana region on a quarterly basis. The survey tracks changes in companies’ revenue, profitability, and employment levels compared to the same quarter during the prior year, along with CFOs’ perception of the business outlook for their companies. CFO input on these four metrics is combined into the BBI to provide a barometer of the Michiana-area business climate.

“The overall 1st quarter survey results reveal one finding that’s somewhat of a mystery,” said Terry Bush, a director at Kruggel Lawton. “We’re hearing anecdotally about employers having difficulty meeting their recruiting and employment needs, yet the 1st quarter survey results indicate a slight decrease in overall headcount among participating companies. On the plus side, given their unique role and insight into their companies’ prospects, strong CFO optimism is always a plus.”

If you are a CFO in a Michiana area for-profit business and would like to participate in this survey and receive results, please contact Terry Bush at tbush@klcpas.com or call 574-289-4011.