Uncertain global economy drives cash accumulation by AFP US members in 4Q 2015
by Kylene Casanova
AFP Corporate Cash Indicators® -- January 2016 survey results for the last quarter of 2015, showed that U.S. businesses continued to build their cash reserves. As American companies hoarded cash at a far more rapid pace (+16% of companies) during the last quarter of 2015 than in the prior quarter.
This increased caution was due to growing geopolitical risks, severe decline in most equity markets, continued volatility in commodity and currency prices and prevailing uncertainty, companies are continuing to take a more conservative approach with their investments.
1Q 2016 - caution will continue
The survey showed that in the current quarter this caution will continue as respondent companies only expected a slight decrease (1%) in their current cash and short term investment holdings?
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