Unfortunately, it appears that fears of a double-dip recession are starting to paralyze fundamental business decisions regarding expansion, expenditures and hiring.
A new survey of 516 US Chief Financial Officers (CFOs) and senior comptrollers found that optimism about the economy is fading, and most believe that we won't see a recovery until the second half of 2011 or later.
Conducted by Grant Thornton LLP, the study also revealed that:
Less than one-third (30 percent) expect improvement in the U S economy that's down from 44 percent just six months earlier.
More (46 percent) expect improvement for their own businesses although, even that's down from 52 percent six months ago.
More than half (59 percent) are concerned with a double-dip recession.
More than three-fourths (79 percent) believe that the U.S. economy will not recover until the second half of 2011 or later.
While 62 percent expect no increase in prices over next six months, 31 percent expect their prices to increase. This is up from 24 percent six months earlier.
Only 29 percent plan to increase hiring in the next six months, while 21 percent plan to decrease hiring.
More details from the survey are available here.