CFO Business-Conditions Index Slips

12.09.2011

Respondents committing more to capital spending increased to 21% from 19%, but the number committing less to cap-ex grew, too, to 26% from 21%. Still, looking ahead 60 days, 27% said they plan to commit more for capital assets, up from 24%, while the reading for those expecting to commit less declined, to 13% from 16%.

reading of that result was that many commitments for new capital programs were put on hold, based on uncertainties that "were amplified by the debates about the federal debt limit." The modestly brighter cap-ex outlook, and the further declines in interest rates, it said, could be reflected in the slightly more positive expectations.

In terms of capital availability, 14% saw an improvement in financial conditions, compared to 16% seeing such an improvement in July, while those seeing a worsening stayed flat at 16%. Looking ahead two months, improvement was expected by 18%, compared with 11% in July. And those saying conditions will worsen improved to 14% from 25%.

Additional hiring was reported by 22% last month, up from 21%, while 10% in August said they did less hiring, an improvement from 13%. Over the next 60 days, 20% see more hiring, up from 18%, with 12% expecting to reduce hiring, down from 16%.