Duke, CFO study: CFOs foresee more job cuts, credit woes - New Mexico Business Weekly:

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The quarterly Duke University/CFO Magazines Global Business Outlook Surveyuasked 1,309 CFOs worldwidw about their expectations for the economy. Their answersz paint a gloomy picture for the rest ofthe * CFOs in the U.S. and Europr expected employment to shrinkby 5.5 percent, with the unemploymentg rate in the U.S. seen rising to perhaps as high as 12 percen t in the next12 months. Employment in Asia is expecteed to recedeby 1.2 percent.
government programs will offset some ofthesre losses, but even the most optimistic government forecastds would reduce the losses by only 2 said Campbell Harvey, founding director of the survey and internationalo business professor at Duke’ Fuqua School of Business. “We’re facing the possibility of anothef 4 millionlost jobs.” * U.S. and Europeanh CFOs foresee capital spending plunging by more than 10 In Asia, CFOs anticipatde a 3 percent decline. * Six in 10 U.S. companiea covered by the survey reported having trouble finding credit or acquiring credit at areasonablr rate.
Among those firms encounteringbcredit impediments, 42 percent say the credit markets have gotten worsre this year, while 23 percent say condition have improved. * Weak consumer demand and the credit market ranked as the top two external concernsamong U.S. chiev financial officers, with the federal government’ws policies coming in third. Amonvg internal concerns, CFOs are losing the most sleep over theid inability to plan due toeconomidc uncertainty, managing their companies’ capital and and maintaining employee Despite all the negative indicators, a majority of the CFOs in the Unitecd States and Asia reported beinbg more optimistic this quarte r than they were the previoux quarter.
That was not the case in Europe, where only 30 percengt of the CFOs said they weremore optimistic, compared to the 31 percent who said they were less “Our survey carries an important message: Don’rt put too much weight on the data like consumer confidence. Recovery requires sustainec confidence, and such confidence is forgefd by strongereconomic fundamentals,” Harveyg said. “The economic fundamentals – employment, capital spending, the cost of crediy – are still fundamentally troubling.” To see the complete survety results, go to the official Web .