|
The weak dollar has had a negative impact on business say CEOs in the US and expect the dollar to take between and two years to strengthen again. In a Grant Thornton LLP national survey of 250 US chief executive officers, 42 per cent of respondents said their businesses had been hurt by the weakening of the US currency and44 per cent do not expect it to strengthen for another one or two years. They said that reducing federal budget deficits (64 per cent), lower energy prices (40 per cent), technology advancements (28 per cent) and innovation (28 per cent) would help strengthen the dollar the most.
Eighty-two percent believe that higher inflation is
a result of a weak US dollar, while 71 per cent believe
that the weak dollar also means greater foreign spending
/ investment on US soil.
|
What type of impact has the weak U.S. dollar had on your business? | | Very positive impact | 8% | | Somewhat positive impact | 16% | | Neither positive nor negative impact | 35% | | Somewhat negative impact | 35% | | Very negative impact | 7% |
| When do you think the U.S. dollar will strengthen? | | Within the next year | 15% | | 1 to 2 years from now | 44% | | 3 to 4 years from now | 26% | | More than 4 years from now | 4% | | Not sure/Don't know | 12% |
| Which three of following do you think would help strengthen the U.S. dollar the most? | | Reduce federal budget deficits | 64% | | Lower energy prices | 40% | | Technology advancements | 28% | | Innovation | 28% | | Restructuring of trade policies | 27% | | More productive U.S. workforce | 25% | | Lower corporate tax rates | 24% | | Better educated U.S. workforce | 18% | | Improved public infrastructure (U.S.) | 7% | | Lower interest rates | 5% | | Greater compliance with global sustainability/green initiatives | 4% | | Other | 13% |
| To what extent do you think the following are a result of a weak U.S. dollar? | | Higher inflation | 82% | | Greater foreign spending/investment on U.S. soil | 71% | | Closes the U.S. trade deficit | 47% | | Recession/economic slowdown (in the U.S.) | 41% | | Lower returns on Wall Street | 37% | | Lower interest rates | 32% | | Reduced foreign investment in U.S. companies | 23% | | Higher unemployment (in the U.S.) | 22% |
| How has the weak U.S. dollar affected your business? (Check all that apply) | | Increased your costs related to buying foreign products/services | 39% | | Increased your companies' focus on global business strategies | 34% | | Made your company more competitive in foreign markets | 25% | | Increased the complexity of your accounting/financial systems | 17% | | Attracted greater foreign investment in your business | 11% | | Made your company more competitive in U.S. markets | 9% | | Discouraged from partnering/doing business with foreign companies | 8% | | Other | 12% | | It has not affected my business | 18% |
In its eighth year, the Grant Thornton LLP Business Leaders'
Survey captures the thoughts of business leaders on economic
and financial reporting issues. The current survey of
250 CEOs was completed between 16 June and 27 June 2008.
|
