While at least 75 percent of CFOs in the United State believe that major economies in the world are showing signs of slowing down, they believe that the slump will only be for a while and that investments in Enterprise Resource Planning will continue to rise.

Deloitte LLP in New York, in a survey covering the third quarter of 2019, says that despite expectations of a slump, just 15% of CFOs predict the decline in business activities to go on an extended period.

In an earlier survey, some 80% of them expected the downturn to be mild.

This sentiment was likely responsible for increased capital spending this year even if other benchmarks were down during the second quarter of 2019. ‘Recession watch’

“The world increasingly appears to be on recession watch,” says Deloitte’s chief global economist Ira Kalish.

Deloitte cites as factors the escalation of the tariff war between the US and China, the probability of a no-deal Brexit, trade questions within North America and concerns on some trade deals between US and Europe.

Growth expectations for revenue waned as earning and hiring declined. The survey’s own-company optimism index turned negative for the first time in nearly seven years. The new survey for the third quarter of 2019 reflects the same sentiment.

Bucking the trend

Despite the glum outlook, Aaron Continelli of Business.com says projections from Allied Market Research puts the ERP market increase at about $41.69 billion in sales by next year. He points out that “cloud-based ERP continues to rise in popularity, with a projected growth of up to 10% by 2020.”

He identifies the steady adoption of mobile phones and other electronic communication devices as catalysts to cloud-based ERP growth.

Aside from this, the erosion of corporate barriers to the Internet and social media are among the accelerators of cloud ERP’s impressive performance.