MARCH 2024 INDUSTRY NEWS AND TRENDS
Inflation a top concern for small business
U.S. Chamber of Commerce data shows that nearly one-quarter of small business owners (23%) consider inflation to be their top concern. Given that 54% reported capital outlays in the last six months and 21% plan to make capital purchases in the next three months, many are likely to be feeling the pinch.
After the banking collapse of 2023, aftershocks could affect hundreds more
An analysis of 4,000 U.S. banks found that nearly 300 are vulnerable, with high levels of commercial real estate exposure and large unrealized losses tied to high interest rates created by multiple rate surges. Most of these banks are community lenders with less than $10 billion in assets, but a number are larger regional banks.
Among finance executives, economic optimism is high
The latest quarterly survey released by AICPA & CIMA indicate higher levels of optimism among business finance leaders. Nearly half of the respondents (primarily CFOs and controllers) said they are optimistic about the U.S. economy, the highest level of organizational optimism since the first quarter of 2022.
However, inflation is still an issue, with 71% of respondents saying that inflation will be their biggest concern in the next six months.
Outcomes of the latest Federal Reserve policy meeting
The Federal Reserve is holding steady on interest rates and forecasting three rate cuts this year. The Chairman indicated that the policy rate had likely reached its peak and that the Fed would likely begin “dialing back” policy restraint this year.
