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AFP Corporate Cash Indicators™

Confidence among U.S. businesses was steady during the final quarter of 2013, according to the January 2014  AFP Corporate Cash Indicators™,  a quarterly metric tracking recent and anticipated changes in U.S. corporate cash balances.

The latest readings from AFP CCI™ reveal that the pace of corporate cash accumulation was relatively unchanged during the fourth quarter of 2013 (both quarter-to-quarter and year-to-year).  However, financial professionals do not expect a further acceleration in cash holdings during early 2014, the indicator measuring expectations in the change of cash holdings during the current quarter dropped from a reading of +6 in the October report to -1.  The indicator for short-term investment aggressiveness jumped to +7 an increase of 5 points from the prior quarter and up 7 points from a year ago. This is an all-time high for this metric.

2014 January CCI Chart

About the AFP Corporate Cash Indicators™

The AFP Corporate Cash Indicators™ (AFP CCI™), underwritten by State Street Global Advisors, provide treasury and finance professionals, policymakers and market analysts with timely data on a determinant of economic activity: corporate cash levels. The AFP CCI™ is created and maintained by the Association for Financial Professionals (AFP), a professional society that serves corporate finance departments globally.

AFP’s research department began collecting quarterly data in January 2011. The next AFP CCI™ report will be published in the April 28, 2014 issue of AFP EconWatch newsletter.

Survey Methodology

On the opening days of each quarter, AFP asks select members whether their short-term investment holdings increased or decreased in the past year and past quarter; whether investment selections for those cash holdings changed in the last quarter; and whether they expect cash holdings to increase or decrease in the coming quarter. The survey goes to people whose day-to-day job is manage their companies’ cash and short-term investment portfolios and are fully aware of their organizations’ cash strategies.

For consistency, AFP asks the same questions each quarter. Companies’ decisions to grow/shrink the size of their cash and short-term investment portfolios reflect their business outlook and direction, making these decisions leading indicators of economic activity.

AFP Corporate Cash Indicators™ is a trademark of the Association for Financial Professionals. All AFP Corporate Cash Indicators™ survey questions, data and reports are the copyrights of the Association for Financial Professionals, and all rights are reserved. For information about publishing the CCI on your site, please contact pr@afponline.org.

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