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Regional CFO Benchmark Index Hits Lowest Level in More Than Eight Years

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One key measure of business performance in the region has just racked up its poorest score since that measure was first launched more than eight years ago, but the team that conducts the survey to arrive at the score says optimism is still reasonably prevalent in Southwest Michigan and Northwest Indiana.

The first quarter 2019 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, reached its lowest level since the survey began over eight years ago. The overall BBI was 51.86 out of a maximum possible score of 100, a decrease of more than 11-percent from the fourth quarter of 2018.

Kruggel Lawton conducts this confidential survey of CFOs in for-profit companies in the South Bend/Elkhart region on a quarterly basis. The survey tracks changes in companies’ revenue, profitability, and employment levels compared to the same quarter of the prior year, along with CFOs’ perception of the business outlook for their companies. Participating CFOs’ input on these four metrics is combined into the overall Benchmark Business Index to provide a barometer of the Michiana-area business climate.

Noteworthy first quarter survey results include:

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  • All four metrics that comprise the Index – Revenue, Profitability, Employment, and CFO Outlook – decreased from the prior quarter
  • The Revenue and Profitability metrics decreased the most – 17-percent and 13-percent respectively
  • The Employment metric and the CFO Outlook metric both decreased 8-percent from the prior quarter

Kruggel Lawton Director Terry Bush says, “In light of recent news – both nationally and regionally – about softness in the economy, the decline in the first quarter survey results is not overly surprising,” adding, “However, this is not all bad news…on their perception of the outlook for their company, 78-percent of participating CFOs selected ‘OK, we’re treading water’ or ‘Good, we’re improving,’ which indicates a degree of optimism on the part of CFOs.”

Bush says if you are a CFO in a Michiana area for-profit organization and would like to participate in the survey, you can contact him by email at tbush@klcpas.com or call 574-289-4011, ext. 205.

With offices in St. Joseph, Michigan…South Bend and Elkhart, Indiana…and Knoxville, Tennessee, Kruggel Lawton CPAs is a full-service accounting and business consulting firm offering assurance services, tax consulting, estate planning, business valuation, and business accounting services. Kruggel Lawton also has national and international capabilities as an independent member of the BDO Alliance USA. You can learn more online at www.klcpas.com.