Businesses are generally bullish on finishing 2020 on a strong note in spite of the recent surge in COVID-19 cases, according to a new survey recently conducted by Crowe.
The public accounting, consulting, and technology firm polled 256 C-suite executives across industries in September and October. Crowe Business Challenges Survey: Part III was the third and most recent in a series of pulse surveys Crowe has been conducting since the early pandemic days.
Among the study's findings was that 42 percent of respondents expressed optimism about the economy, compared to just 30 percent in the survey conducted over the summer. At the same time, 71 percent said they were at least somewhat optimistic about the state of their companies, a slight increase over the 65 percent of respondents who said the same during the summer. Hopes for revenue also seem to be climbing. Although 54 percent saying they expect at least a moderate decline in year-over-year revenue, that's down from 70 percent in the previous set of responses.
"Executives were battle-tested in the spring and summer when they put strategic plans and key initiatives into play while reforecasting their financials," says Ann Lathrop, chief marketing officer at Crowe. "Our data illustrates the resiliency that executives have built up over the past few months when reporting their own sentiment. Spikes in case numbers, potential lockdowns and even the uncertainty leading up to the election didn't cause extreme reactions like we saw a few months ago."
Executives were more positive about end of year revenue than in earlier surveys, with 31 percent saying they expected their company to close out 2020 with at least a moderate revenue increase, nearly double the 17 percent who gave the same answer in the summer version of the survey. Technology investment is also poised to rise, with three in four saying their companies will definitely or likely be investing in new technology in the next 3-6 months.
"The expected increase in technology spending is encouraging, as many companies have adapted to a digital and flexible work environment," added Lathrop.
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