Regional CFOs foresee slow recovery in next six months

Chief financial officers and senior comptrollers in the nation's Central Region foresee a continued slow recovery over the next six months, according to survey results released Monday by Grant Thornton LLP.

Six of 10 CFOs said they expect the national economy to stay the same or get worse in the next six months, while half expect the same for their own companies.

Executives are taking a long-term view, as 60 percent expect the economy to come out of the recession in 2011. Companies also are looking for sources of revenue, as more than 90 percent of those polled expect their companies to increase or hold their own prices and fees steady.

Roughly a quarter of those surveyed said their companies plan to increase hiring in the next six months, while 23 percent plan to decrease company head counts.

More than half said the best way to create jobs would be to cut corporate tax rates, compared to 40 percent nationally, with another 23 percent pointing to reduced personal income tax rates.

Employee costs are the biggest source of pricing concern for executives, with two-thirds of those surveyed pointing to costs of salaries, health care and pensions as a source of pricing pressure. On a related note, 44 percent of CFOs surveyed plan to reduce spending on bonuses in coming months, while 35 percent plan to reduce salary raises and 25 percent will reduce company spending on health care benefits.

Grant Thornton LLP is the U.S. branch of global audit, tax and advisory organization Grant Thornton International Ltd. Nearly 500 executives were polled for the survey.[[In-content Ad]]