December 14, 2004
According to the December "CFO Outlook Survey," conducted by Financial Executives International and Baruch College's Zicklin School of Business, participating CFOs expect capital spending at their companies to increase by 14 percent in the next 12 months, compared to the 8 percent increase predicted last quarter. They also forecast a 12 percent rise in technology spending versus 7 percent projected last quarter.
These spending projections were made despite more than half (56 percent) saying their companies have felt the impact of rising producer prices last quarter. However, more than three-quarters (77 percent) of that group plan to pass along at least half of all of the increased costs to consumers.
CFOs remain quite optimistic about the economy. While the survey optimism index took a slight dip for the second consecutive quarter, at 70.78 (out of 100), it's close to its record high of 73.55 recorded in June of this year.