Chief financial officers are more optimistic about US economic growth than they were a year ago, with nine out of ten expecting their companies to increase or maintain the size of their workforce next year, according to the Bank of America Merrill Lynch 2014 CFO Outlook survey.

Chief financial officers are more optimistic about US economic growth than they were a year ago, with nine out of ten expecting their companies to increase or maintain the size of their workforce next year, according to the Bank of America Merrill Lynch 2014 CFO Outlook survey.

Of those surveyed, 54 per cent said their companies’ 2014 sales will be higher than in 2013, with 8 per cent predicting a sales decline. Related to those expectations, 94 per cent of CFOs said their companies plan to implement at least one growth strategy in 2014.

When asked about potential negative impacts on the US economy, CFOs most often named healthcare costs, with 67 per cent ranking it as a significant concern. That was followed by the effectiveness of the US government (62 per cent) and the US budget deficit (57 per cent).

CFOs gave the US economy an average score of 53 out of 100, up from 49 a year ago; in the 2013 CFO Outlook Mid-Year Update – a smaller survey with 250 respondents – the score was 58. They gave the global economy a score of 50, up from 45 last year and comparable to the mid-year score of 51.

Regarding economic growth, 47 per cent expect expansion in 2014, up from 39 per cent a year ago. In the mid-year update, 55 per cent forecast growth. Only 12 per cent of respondents said they expect the economy to shrink, down from 24 per cent a year ago and similar to 10 per cent at mid-year.

CFOs remain optimistic about avoiding personnel cuts, with only 7 per cent projecting layoffs for full-time employees. By comparison, 47 per cent expect to hire additional employees, and 43 per cent forecast no changes to the size of their workforce.

Meanwhile, it was found that 43 per cent of CFOs expect capital expenditures to remain steady at their companies, while 34 per cent expect to spend more and 21 per cent forecast less spending.

In other findings, 37 per cent of those surveyed expect their companies to outsource work to contract employees in 2014. The top reasons for outsourcing were insufficient availability of qualified workers (39 per cent) and uncertainty about rising healthcare and insurance costs (27 per cent).

The 2014 CFO Outlook was conducted by Granite Research Consulting, which interviewed 751 CFOs, finance directors and other executives selected randomly from US companies with annual revenues between $25 million and $2 billion.