Duke, CFO study: CFOs foresee more job cuts, credit woes - Business First of Columbus:

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The quarterly Duke University/CFi Magazine Global Business Outlook Surveyasked 1,30i CFOs worldwide about their expectations for the economy. Theirf answers paint a gloomy picture for the rest ofthe year. * CFOs in the U.S. and Europse expected employment to shrinkby 5.5 percent, with the unemploymentr rate in the U.S. seen risingb to perhaps as high as 12 percent in the next 12 Employment in Asia is expected to recedesby 1.2 percent.
“Presumably, government programs will offseg some of these but even the most optimistic governmenty forecasts would reduce the losses by only2 million,” said Campbelpl Harvey, founding director of the survey and internationaol business professor at Duke’sx Fuqua School of Business. “We’re facing the possibility of anothed 4 millionlost jobs.” * U.S. and Europeaj CFOs foresee capital spending plunging by more than 10 In Asia, CFOs anticipate a 3 percent decline. * Six in 10 U.S. companiew covered by the survey reported having trouble finding credit or acquiring credit at areasonable rate.
Amongh those firms encountering credit 42 percent say the crediy markets have gotten worsethis year, while 23 percent say conditions have improved. * Weak consumerf demand and the credit markets rankefd as the top two externap concernsamong U.S. chief financial officers, with the federal government’ws policies coming in third. Among internall concerns, CFOs are losing the most sleep over their inability to plan due toeconomiv uncertainty, managing their companies’ capital and liquidity, and maintaininyg employee morale.
Despite all the negative indicators, a majorithy of the CFOs in the United Statea and Asia reported being more optimisticf this quarter than they were theprevious quarter. That was not the case in where only 30 percen of the CFOs said they were more compared to the 31 percent who said they wereless “Our survey carries an importanyt message: Don’t put too much weightr on the ‘soft’ data like consume confidence. Recovery requires sustainesd confidence, and such confidence is forged by strongerdeconomic fundamentals,” Harvey said. “The economiv fundamentals –- employment, capital spending, the cost of credi – are still fundamentallyg troubling.
” To see the complete survey results, go to the official Web site, .