Canadian chief financial officers of middle-market companies are positive about the current state of their own industry as well as the domestic economy, according to the first Canadian Mid-Market CFO Survey by GE Capital, Canada.

Moreover, 40% of respondents expect their industry to grow over the next 12 months, and 39% expect the economy to grow. However, they show significantly lower sentiment about the current state of the global economy.

Their number one concern as it relates to the growth and stability of the Canadian economy in 2012 is the future health of the U.S. economy, cited by 36% of respondents. European fiscal conditions were the second-greatest concern, cited by 19%.

The survey, which took place during the first quarter of 2012, included responses from 186 CFOs of companies with mean revenue of $136 million, operating across the following four major industries:

• Metals, mining and metals fabrication
• Food, beverage and agribusiness
• Retail
• Trucking

"Mid-market CFOs are confident about their industries and their ability to drive business forward despite ongoing U.S. and European fiscal issues," said Katherine Lee, president and CEO of GE Capital, Canada. "While their concerns are clear, CFOs are focused on growing their businesses this year through smart investing and the effective use of capital."

Selected Highlights

• Slightly more than two-thirds (67%) of CFOs surveyed in Canada expect their revenue to be greater in 2012 compared to 2011. Another one-quarter expect revenues to be stable.
• CFOs were fairly split in their predictions related to profit margins, with 45% expecting similar figures compared to last year, and another 40% expecting greater margins.
• In terms of capital expenditures, 42% of CFOs expect to keep spending fairly flat, while 37% expect an increase versus 2011.
• When it comes to spending, 61% of CFOs are considering laying out more for equipment this year, followed by 42% who plan to spend more to achieve organic growth.
• At the same time, 65% expect their financing needs in the next 12 months to be the same as in the previous 12 months.

Read the full GE Capital Canadian Mid-Market CFO Survey