Uncertain economy leads U.S. firms to curb expansion

Market conditions may deter companies from expanding operations but not from rolling out new products. In a new survey of chief financial officers, nearly one-third (32 percent) said they’re most likely to put corporate expansion plans on hold amid an uncertain economy.

Another 23 percent said they would postpone a merger or acquisition. Delaying the launch of a new product or service received just 10 percent of the response.

"In a tight economy, businesses are more focused on balancing the bottom line and maintaining productivity than expanding operations," said Paul McDonald, executive director of RHI Management Resources, which developed the survey.

He pointed out that technology is also critical to a company’s competitiveness. "Rather than postpone investments in new technology, businesses are carefully weighing overall efficiency against the up-front expense of implementation."