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Survey Suggests CFOs Concerned about Company Progress

Survey Suggests CFOs Concerned about Company Progress

The results of the recent Deloitte CFO Signals survey for the second quarter of 2011 indicate that financial bosses are becoming increasingly worried about a host of factors threatening to stunt the progress of their companies.

According to a press release, the responding CFOs signaled that they had become more concerned about the investments their companies were making, particularly with the slowing economic recovery.

Overall, the survey - which examined responses from CFOs of some of the largest companies across North America - discovered that "own-company optimism" dropped from 62 percent during the first quarter to 40 percent in the second quarter.

Additionally, the number of CFO respondents who said they were less optimistic than the previous quarter increased from 16 percent to 32 percent, according to the survey.

"CFOs foresee moderate growth, but rising volatility in input prices, government policy and economic trends is making them wary of major investments," said survey leader Greg Dickinson. "Boards and other stakeholders appear to agree that cash enhances strategic options and are not currently pressing for capital investment."

The results of the survey were released just days before Goldman Sachs CFO David A. Viniar told analysts that the company expects to cut 1,000 jobs around the world this year, in another sign that the slow economic recovery is impacting company optimism, Bloomberg reports.