Corporations to maintain spending discipline despite economic recovery, study finds

Lower budgets and spending discipline established by companies during the economic downturn will likely remain even if the economy recovers, a CFO Research survey found.CFO Research Services, in collaboration with American Express, surveyed 479 senior finance executives across a wide range of industries in Canada, the United States, Mexico, Europe, Asia and Australia. The survey explored companies’ investment and spending priorities over the next 12 months, as well as how those priorities have shifted in the current economic environment.In Canada, 57% of those surveyed indicated the decisions made during the economic downturn have actually improved their companies’ long-term prospects for success, the study found.Eighty-five per cent of executives worldwide say that cost control will remain a long-term focus for their company.  “It is interesting to note that this focus on discipline isn’t fleeting,” said Rob McClean, vice president and general manager of global commercial card at American Express Canada.“The survey shows that 73% of respondents based in Canada expect their companies’ current cash and working capital discipline to remain intact over the next two years.”