The sentiment of Canadian chief financial officers (CFOs) of middle-market companies on the state of their own industry and the strength of the national economy remained steady and positive in the third quarter, according to the latest GE Capital Mid-Market CFO Survey. CFOs’ view of the world economy was unchanged and remains less optimistic than about the national economy.

More than one-third (38%) of CFOs think the national economy will grow over the next 12 months. Nearly half (48%) think it will stay the same, although that’s down three percentage points since the last survey in this series, which was conducted in the first quarter of 2012.

The survey, which was conducted during the third quarter of 2012, included responses from 203 CFOs of companies with average revenues of $163.3 million operating across five distinct industries including: Energy; food, beverage and agribusiness; metals, mining and metals fabrication; retail; and transportation.

CFOs’ top two immediate concerns are the potential impact of European fiscal conditions and the American economy, although worries about the latter declined by five percentage points since the first quarter. Concerns about unemployment, oil prices and credit market liquidity also increased. In a similar GE Capital survey conducted in the U.S. during the same time period, unemployment is the top concern, followed by the U.S. budget deficit and European fiscal conditions.

Highlights from the Report:

• Most CFOs plan to keep capital expenditures about the same this year compared to 2011, but more than one-third (37%) plan to increase them. Transportation CFOs lead all industries in expectations for greater cap-ex (45%, up 5 points). Fewer U.S. CFOs expect cap-ex to be greater (28%), and a larger share (47%) think it will stay about the same.

• Fifty-nine (59%) percent said their financing needs will remain the same through the next 12 months (down six points). Thirty-four (34%) percent said their financing needs will increase (up four points); those in the energy industry are most likely to expect increased financing needs. In the U.S., 72% think their needs will stay the same, and 20% expect them to increase.

• Despite a slight softening, nearly half of Canadian CFOs expect their businesses to grow moderately over the next one to three years. Moreover, most CFOs expect increasing or stable profits in 2012.

Read the full Canadian CFO Outlook.