CFO Survey: Technology capital spending to drive 2016 financial plans

Data security, systems upgrades and healthcare reform rank among the top concerns for corporate financial decision makers.

That’s among the key findings of a survey by TD Bank, which also reveals that CFOs plan to significantly increase their company's capital spending in 2016. Respondents cited three main keys areas of capital spending for 2016: technology (58%), existing facilities (44%) and data security (41%.

According to TD Bank's fifth annual CFO Survey, which polled CFOs and other corporate financial decision makers at middle market and large corporations, 61% of respondents expect to increase capital expenditures next year, reflecting a marked and steady climb since 2010, when TD’s inaugural CFO Survey found 39% of executives planned to increase spending.

Despite speculation that the Federal Reserve may soon raise interest rates for the first time in over a decade, the majority of executives reported this would not alter their plans to make business investments in the year ahead. Nearly three-quarters (74%) of executives noted the rate increase would have no impact on their borrowing, and 6% said a rate hike would make them more likely to borrow.

"Rising interest rates may create headline noise which impacts the stock market, but executives are prepared for an eventual rate increase and are moving forward with investments in their infrastructure, facilities and people,” said Greg Braca, executive VP and head of corporate and specialty banking at TD Bank. “It’s clear that businesses have adjusted to the ‘new normal’ and are focused on growing within that environment.”