National CFO survey finds weak job market to continue — only 29% plan to hire over next six months and 79% believe U.S. economy will not recover until second half of 2011 or later
59% are concerned with double-dip recession; 64% say cutting corporate and individual taxes would create jobs
CHICAGO, Oct. 21, 2010 — In a national survey of U.S. Chief Financial Officers (CFOs) and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, only 29% plan to increase hiring in the next six months, while 21% plan to decrease hiring.
A vast majority (79%) believe that the U.S. economy will not recover until the second half of 2011 or later, and more than half (59%) are concerned with a double-dip recession.
“These findings are consistent with what we have been hearing from our dynamic-organization clients,” said Grant Thornton LLP CEO Stephen Chipman. “Indecision stemming from a weak economy and the unknown impact of governmental tax policy and new regulation on business and individuals is causing paralysis, particularly as it relates to major business decisions, including expansion, expenditures and hiring.”
Grant Thornton LLP conducted the biannual national survey from Oct. 5 through Oct. 15, 2010, with 516 U.S. CFOs and senior comptrollers participating.
Key findings include:
- Much less optimism about U.S. economy over next six months
30% expect improvement, down from 44% six months earlier. - More optimism for their own businesses than U.S. economy
46% expect improvement, although down from 52% six months ago. - Inflation creeping in
While 62% expect no increase in prices over next six months, 31% expect their prices to increase. This is up from 24% six months earlier. - No economic recovery until second half of 2011 at the earliest
42% do not expect economic recovery until after 2011, while another 37% say recovery won’t happen until the second half of 2011.
| Over the next six months, do you expect the U.S. economy to: | ||||
| 3/09 | 9/09 | 3/10 | 10/10 | |
| Improve | 23% | 49% | 44% | 30% |
| Remain the same | 46% | 41% | 45% | 56% |
| Get worse | 31% | 10% | 10% | 14% |
| Over the next six months, do you expect your company’s financial prospects to: | ||||
| 3/09 | 9/09 | 3/10 | 10/10 | |
| Improve | 31% | 45% | 52% | 46% |
| Remain the same | 41% | 43% | 41% | 45% |
| Get worse | 27% | 13% | 7% | 9% |
| Over the next six months, do you expect prices or fees charged by your company to: | ||||
| 3/09 | 9/09 | 3/10 | 10/10 | |
| Improve | 15% | 22% | 24% | 31% |
| Remain the same | 70% | 67% | 67% | 62% |
| Decrease | 15% | 11% | 9% | 7% |
| Over the next six months, do you expect your headcount to:* | ||||
| 3/09 | 9/09 | 3/10 | 10/10 | |
| Improve | 18% | 24% | 29% | 29% |
| Remain the same | 43% | 54% | 49% | 51% |
| Decrease | 39% | 22% | 22% | 21% |
| Are you concerned about a double-dip recession? | |
| Yes | 59% |
| No | 41% |
| When do you believe the U.S. economy will recover? | |
| Second half of 2010 | 3% |
| First half of 2011 | 18% |
| Second half of 2011 | 37% |
| Later than 2011 | 42% |
| The best way to create jobs is:* | |
| Cut corporate tax rate | 35% |
| Cut personal income tax rates | 29% |
| Government stimulus programs | 9% |
| R&D credits | 6% |
| Tax credit for new hires | 22% |
* Percentages may not total 100 due to rounding.
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