This week’s survey results show optimism growing about 12-month recovery.
GTreasury is committed to helping its customers and the industry at large make actionable decisions throughout the COVID-19 pandemic. With that in mind, we are active supporters of the Treasury Coalition, an industry-wide effort led by Strategic Treasurer.
The Treasury Coalition has launched the Global Crisis Monitor, an “immediate and ongoing survey of COVID-19 impact and response.” The survey collects weekly impact and reaction data from corporate treasury professionals around the world to provide flash insights into the current sentiment of the industry.
- Debt and liquidity: Changing perceptions of organizational liquidity repeated a week on week improvement. Perceptions of central bank liquidity, government fiscal activities, and fiscal policy all improved this week.
- Impact of Covid-19 on company: Respondents continued to report improvements in perceptions of how their company/organization is reacting to COVID-19. Views of community/family and country responses also improved slightly.
- End of health issue: Financial professionals saw slight improvement on when they expect the end of the health issue (now under 9 months, down from 10 months last week).
Cautionary and negative outlooks:
- Continued concerns about accounts receivable: For the seventh week in a row, organizations reported a very negative outlook for accounts receivable.
- Reconsidering liquidity forecasting: 81% of respondents have reconsidered plans due to COVID-19. More than half of these (56%) are reassessing plans for liquidity and forecasting.
- Financial normalcy: The mean of when businesses return to the state they were in before COVID-19 increased slightly to a mean of almost 12 months.
- Economic recovery: This week, 54% had a negative outlook of a recovery happening in the next three months (down from 66% last week). The optimism of a recovery in the next 12 months was 43% this week, down from 51% last week.