Chief financial officers in the United States have predicted stronger growth in their companies' employment and capital spending next year, says a survey from Financial Executives International and Duke University's Fuqua School of Business.
Of the CFOs polled, the survey authors predicted capital spending to rise at 63 percent of companies, with an average increase of 5 percent.
The survey also says employment is beginning to pick up. Two-thirds of the surveyed companies said they plan to increase employment in 2004, while 14 percent said they expect to cut back.
Overall, employment should increase by 2 percent in 2004, the survey researchers said. That numbers is up from no growth predicted six months ago.
Of the executives surveyed, 88 percent said they are more optimistic about the economy this quarter than they were in the third quarter and 1 percent said they are less optimistic.
The survey respondents predicted gross domestic product to rise by 3.6 percent in 2004, a faster rate than in any other quarter in the last year.
With the stock market regaining some power after years in the doldrums, the survey also reports companies' use of stock options in compensation is changing.
Among the public companies that responded to the survey, 13 percent said they will eliminate stock options, while 60 percent said they plan to reduce that form of compensation. The remainder reported no plan to change current practices.
Researchers said their survey results are based on interviews with 236 CFOs during the second week of December.
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