MAY 2024 INDUSTRY NEWS AND TRENDS
Days payable outstanding: The key to better cash flow
This article from CFO.com takes a close look at days payable outstanding (DPO), a ratio that measures how many days, on average, a company takes to pay its bills. By calculating how your DPO measures up to peer benchmarks, you can determine how healthy your accounts payable processes are and fine-tune your cash flow to optimize liquidity.
U.S. economic confidence falls
New Gallup poll results collected in April 2024 show that confidence in the U.S. economy is nine points lower than it was in March and the lowest since December. Only 24% of U.S. adults say economic conditions are “excellent” or “good,” while 44% rate them as “poor.”
Americans are more evenly split on the subject of job outlooks, with close to half of Americans (49%) saying it is a good time to find a quality job, and 46% saying it is a bad time.
Latest inflation data may hold good news
The latest inflation data from May 15, 2024, shows consumer prices, including the core consumer price index, are not rising as sharply as they once were. Coupled with a slower-growing economy and a hiring slowdown, this could indicate that interest rates will plateau or even be cut—although not any time soon. Stabilizing consumer prices could also point to a “soft landing” where inflation slows without triggering a recession.
