KPMG convened a cross-industry group of chief financial officers (CFOs) to discuss inflation, continuing staffing shortages, and supply chain disruptions as well as the increasing likelihood that these factors will lead to an economic recession in 2023. While agility and foresight will be key across many functions in the CFO’s domain, financial planning and analysis (FP&A) stood out as an area that must evolve in this volatile climate.
- Although economic growth waned earlier this year, the job market and low unemployment are exceptionally favorable to consumers.
- Despite the downward revision on consumer spending, there seems to be a shift from goods to services and experiences.
- Economists are concerned that over-the-top headlines are driving consumers to talk themselves into a recession.
- Inflationary pressures will likely not completely subside until labor shortages, production constraints, and shipping delays are resolved.
- Transformation of FP&A can help organizations manage their exposure to inflation by tailoring their plans to reflect potential expense increases and potentially take advantage of pricing opportunities.
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