CFOs also cited positive first quarter earnings (28%), increased cashflow over the previous quarter (21%), and increased consumer demand (13%) assigns of improvement."It is apparent that growth opportunities are manifesting, as CFOs increasedtheir interest in mergers and acquisitions," said Marie Hollein, CEO andPresident, Financial Executives International. "Amidst this challengingenvironment, CFOs do point to some signs of stabilization including increasesin both cash flow and consumer demand, implementation of layoff alternatives,and higher expectations for positive second quarter earnings. However, it isclear that the road to recovery is far from over."More than half (56%) stated they are spending cautiously, while approximatelyone quarter are holding off on all, or nearly all, capital investments (28%).In terms of lending, nearly nine out of 10 (87%) CFOs reveal that amountsbeing lent have either decreased or gone unchanged, whilst more than a third(34%) believe it will become increasingly difficult to access credit over thenext six months. Although 34 percent feel credit is still difficult to access,it has loosened in comparison to third quarter 2008 findings (67%).President Obama Steadily Gaining CFOs' Confidence, Skeptical of Geithner'sPerformanceIn the previous quarter's survey, CFOs weighed in on their sentiments towardPresident Barack Obama's performance and their thoughts on the first 100 daysof his Administration. On a positive note, more than twice as many respondents(23%) expressed heightened optimism this quarter compared to last quarter(9%). While nearly half (47%) stated their confidence in the economy hasweakened, this signals a sharp decline from the number of CFOs who expressedunfavorable opinions toward the Administration in the first quarter (58%).At the same time, CFOs' sentiments toward the leadership of Treasury SecretaryTimothy F. Geithner and his response to the current financial situation in theU.S were less than favorable.

When asked to rate Geithner's performance, 43percent of respondents assigned him a "C" grade and nearly three-fourths ofrespondents (73%) assigned him a "C" grade or worse. By comparison to hispredecessor, CFOs viewed former Treasury Secretary Henry Paulson's performanceas satisfactory, with over half (55%) issuing him at least a "B" grade in thethird quarter 2008.Bleak Prospects for College Graduates and Paid Summer Interns; CurrentEmployees Also ImpactedCFOs are witnessing signs of stabilization at companies where layoffs did notoccur this quarter (30%). However, the findings are not as promising forrecent graduates entering the work force or for paid summer interns. Of theCFOs surveyed whose companies have historically hired recent graduates, nearlyall (95%) have either hired less, or the same amount as the previous year.Accordingly, only 5 percent of respondents reveal that their company is hiringmore recent graduates. In comparison, of the companies that have historicallyhired paid summer interns, approximately 61 percent are hiring less, and only8 percent are hiring more.The current economic environment is not only affecting individuals seekingwork, but also those who are currently employed. Over one quarter (28%) ofrespondents specified the work week at their companies was reduced, and 21percent revealed their companies had expanded offerings of early pensions andother retirement incentives, whilst only 17 percent saw furloughs implementedat their companies.

Forty-seven percent of respondents specified otheroptions, including salary reductions, unpaid vacations, pay raise stalls andpreferences to hold onto experienced personnel.Overview of the Survey:Additional topics CFOs were surveyed on include their risk management programsand shareholder advisory vote and compensation packages. Full survey resultsand historical data comparisons are available at or fromNicole Madison at . The study is also available online atthe Financial Executives Research Foundation bookstore.This quarter, the CFO Outlook Survey, conducted by Financial ExecutivesInternational and Baruch College's Zicklin School of Business, interviewed 266corporate CFOs electronically from June 1 through 8. CFOs from both public andprivate companies and from a broad range of industries, revenues andgeographic areas, including some off-shore companies, are represented. Surveyrespondents are members of Financial Executives International.Financial Executives International has been conducting surveys gauging thecountry's economic outlook from the perspective of CFOs for more than 11years.About FEIFinancial Executives International (FEI) is the leading advocate for the viewsof corporate financial management.