The world's senior finance executives are focusing on aggressive new methods to reduce and control costs in the face of the worst economic downturn since the Great Depression. At the same time, many Canadian businesses are continuing to invest in areas such as advertising, technology, and R&D to generate revenue and improve their operations once the recovery begins.

These findings were released in the second annual American Express CFO Research Global Business & Spending Monitor, a survey of 285 senior finance executives from Canada, the United States, Europe, Mexico, Asia, and Australia.

Despite the fact that a 72 percent of respondents expect further economic contraction over the next 12 months, Canadian executives have remained more positive than most. In fact, nearly a quarter of local companies expect to see a modest economic expansion in Canada over the next 12 months, compared to only 2 per cent in the United States.

The survey reveals that times certainly are tough, and very few companies have come out unscathed. While 59 percent of respondents- 58 percent in Canada - anticipate a decrease in headcount at their company in the next six months, many companies are taking actions now to avoid layoffs.

Half the executives polled reported plans to freeze salaries and bonuses, while 16 percent in Canada said they plan to reduce employee benefits and 23 percent in Canada plan to cut salaries and bonuses.

When asked where it would be important to sustain spending, respondents from Canada identified marketing/advertising/PR, research and development, information technology, and employee headcount. Other areas of investment, such as merger opportunities and third-party consultants, were much less likely to be rated as important categories to sustain spending.