DECEMBER 2024 INDUSTRY NEWS AND TRENDS
Post-election, CFOs are confident about the economy
According to the latest CFO survey by Duke University and the Federal Reserve Banks of Richmond and Atlanta, CFO sentiment following the U.S. presidential election is increasingly optimistic about monetary policy. Revenue expectations have risen, and CFOs are confident in the stock market’s continued growth. However, concerns persist regarding labor quality and the political climate, especially around trade tariffs and potential wage stagnation.
For now, the Fed uses caution around rate cuts
Despite expectations of a rate cut in December, uncertainties surrounding President-elect Trump’s proposed tariffs and their potential impact on inflation remain a concern. For now, the Federal Reserve is taking a cautious approach to interest rate cuts amidst a strong US economy, but it seems to be on track for a third rate cut in 2024.
Job openings jumped, hirings slumped in the U.S.
The Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) revealed that job openings increased in October, while hiring decreased. The labor market was affected by storms, strikes, and a significant drop in payroll growth. Despite this, layoffs decreased and voluntary quits rose. The Federal Reserve is closely monitoring these figures as it considers a potential interest rate cut.
U.S. businesses are actively shortening their supply chains
A recent KPMG survey of 250 senior executives found that 59% have supply chains based in the Americas, and active company initiatives are set to boost that figure to 69%.
These executives forecasted that trade routes outside of the Americas would shrink from 25% to 18% in the next three years. The reasons have less to do with cost than with resilience: shorter supply chains are seen as a way to insulate against geopolitical and environmental shocks.
Predatory merchant cash advance companies fined billions
An industry criticized for preying on vulnerable businesses has been impacted by costly legal judgments of late. Most recently, a settlement that could reach $1+ billion is being considered against a predatory merchant cash advance (MCA) company. The Attorney General also recently obtained a $77,000,000 judgment against a different MCA.
These successful legal actions will hopefully help protect small businesses and bring greater control and transparency to a problematic industry.
