Amex Study: Midmarket CFOs Expect Recovery In 2005

Chief financial officers at U.S.-based midmarket firms are optimistic about an economic recovery this year, but still find challenges in managing corporate spending, according to an American Express survey released today.

Of the 320 CFOs surveyed last September, 68 percent said they expect the economy to grow in 2005. Only about half of those surveyed the preceding year had such hopes. Sixty-four percent said compliance levels with preferred suppliers have not met the high levels desired. Likewise, only 40 percent claimed compliance with rules for "limiting spending per transaction," the survey said.

As cost-consciousness continues in the business world, half of the CFOs polled said they are making a priority of "identifying and controlling unauthorized spending." Yet, one of the primary vehicles for such an initiative-the corporate card-remains less used among midmarket companies than their large market counterparts. Fifty-nine percent of the respondents said they have implemented a corporate card system, but many of the CFOs, Amex said, want more readily available and easily accessed spending data.

"CFOs are concerned with raising compliance to spending policies by both rank-and-file employees and upper management," Amex said in a statement. Of those polled, 36 percent said senior management compliance is a "significant barrier to effective indirect spending policies."

"America's growing companies are anticipating bigger profits this year, but, at many of these firms, there's also increasing awareness that financial health is closely tied to managing expenses," said Anré Williams, Amex executive vice president of U.S. commercial cards.