Pessimism is growing among Chief Financial Officers as debate continues over how to address the impending “fiscal cliff.” The results of the latest Duke University – CFO Magazine Survey are in.
Campbell Harvey: "Given the uncertainty of the fiscal cliff, that the CFOs are giving us the very strong message that they have stopped hiring."
Duke Finance Professor Campbell Harvey says more than 70-percent of CFOs say they will reduce hiring if nothing is done to prevent massive spending cuts and tax increases from taking effect at year’s end. Harvey says CFOs are willing to accept aggressive measures to prevent going over the “cliff.
Campbell Harvey: "Interestingly, the most favored idea was the “Bowles Simpson” type of approach where you kind of match two dollars of spending cuts with a dollar of revenue increases."
CFOs expect to increase capital spending by only two-point-five-percent over the next year.