CFOs are cutting back on expectations for capital spending, hiring and prices, according to a survey of CFOs by Financial Executives International (FEI) and Baruch College's Zicklin School of Business. Companies are projecting average increases of 2.3% in capital spending, 4.1% in hiring and 1.9% in prices, down from first-quarter projections of 7.9%, 5.2% and 2.1%, respectively. “While CFOs were a little more downbeat, they were neither outrageously optimistic nor outrageously pessimistic about the economy,” says Zicklin dean John A. Elliott. There's good news on the issue of outsourcing: While 73% say they outsource, more than half outsource to U.S. firms. “We often talk about outsourcing as if everything is going offshore,” says Elliott. “But there's also a lot of efficient contracting for everything from accounting services to benefits to manufacturing where they've found specialists to do the work for them, often here in the U.S.”

CFOs are split over letting U.S. companies choose between using International Financial Reporting Standards (IFRS) vs. U.S. Generally Accepted Accounting Principles. But 55% would support a proposed change by the Securities and Exchange Commission allowing foreign private issuers to choose between GAAP and IFRS.