CFOs Turn Gloomy on Economy, But Hold Brighter View of Their Own Companies' Prospects

National survey of financial chiefs finds weak job market to continue, while 8 in 10 believe US economy will not recover until second half of 2011 or later; worries on double dip


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Grant Thornton



Stephen Chipman





  • Much less optimism about US economy over next six months, with 30 percent of the respondents expecting improvement, down from 44 percent six months earlier.
  • More optimism for their own businesses than the US economy overall, with 46 percent expect improvement at their own firms, although that figure is down from 52 percent six months ago.
  • Inflation is creeping into the picture. While 62 percent expect no increase in prices over next six months, 31 percent expect their prices to increase. This is up from 24 percent six months earlier.
  • No economic recovery until second half of 2011 at the earliest, with 42 percent not expecting economic recovery until after 2011, and another 37 percent say recovery won't happen until the second half of 2011.



Over the next six months, do you expect the US economy to:
 3/099/09 3/1010/10
  Improve23%49%44%30%
  Remain the same46%41%45%56%
  Get worse31%10%10%14%

 

Over the next six months, do you expect your company's financial prospects to:
 3/099/09 3/1010/10
  Improve31%45%52%46%
  Remain the same41%43%41%45%
  Get worse27%13%7%9%

 

Over the next six months, do you expect prices or fees charged by your company to:
 3/099/09 3/1010/10
  Improve15%22%24%31%
  Remain the same70%67%67%62%
  Decrease15%11%9%7%

      

Over the next six months, do you expect your headcount to:*
 3/099/09 3/1010/10
  Improve18%24%29%29%
  Remain the same43%54%49%51%
  Decrease39%22%22%21%

 

Are you concerned about a double-dip recession?
  Yes59%
  No41%

 

When do you believe the US economy will recover?
  Second half of 20103%
  First half of 201118%
  Second half of 201137%
  Later than 201142%

 

The best way to create jobs is:*
  Cut corporate tax rate35%
  Cut personal income tax rates29%
  Government stimulus programs9%
  R&D credits6%
  Tax credit for new hires22%

* Percentages may not total 100 due to rounding.



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