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Optimism improving among CFOs

The mood among corporate bookkeepers is improving, another sign that the economy is likely on the mend.

Nearly 60 percent of the 657 U.S. chief financial officers surveyed this month by Duke University and CFO Magazine say they are more optimistic about the economy than they were three months ago.

But 43 percent said they still expect their companies to cut more jobs during the next year. And capital spending on new projects and investments is expected to drop 3 percent.

“The economy is showing signs of life in the U.S., with CFOs expecting earnings to grow over the next year and corporate optimism improving again this quarter,” said Kate O’Sullivan, senior writer at CFO Magazine, in a prepared statement. “While this suggests that the overall economy is stabilizing, the employment picture continues to deteriorate.”

Cary Sunset 7000 seeks runners, Food Bank contributions

We can all use free stuff these days, and that includes free entry into
a running event that is part of the Sept. 19 Celebrate Cary at Sunset
festival.

Triangle runners can have their entry fees waived for the Cary Sunset
7000 at the Koka Booth Amphitheatre in Cary. The 4 p.m. race is a
7,000-yard - 1.25-mile - run, jog or walk around Symphony Lake.

Instead of paying the $15 entry fee, runners may make a donation of
food to the Food Bank of North Carolina at the Food Bank's booth during
the coinciding Celebrate Cary at Sunset Festival. A minimum donation of
$5 to $10 worth of food is required, but runners are welcome to contribute
more.

Optimism rising among financial officials

Consumers remain skittish, but corporate finance officials are becoming a bit more optimistic about the U.S. economy, another sign that recovery is coming.

In a quarterly survey conducted by the American Institute of Certified Public Accountants and UNC-Chapel Hill's Kenan-Flagler Business School, 39 percent of financial officers said they were "slightly more confident" about the economy. Forty-one percent said they were "pessimistic" about the U.S. economy over the next year, down 12 percentage points from the second quarter.

Since they oversee companies' books, financial officers are widely considered good predictors of future economic trends.

"The trend is definitely in the right direction," said UNC accounting professor Mark Lang.

Panning for gold in North Carolina

Tags: .biz | economy | gold | USA Today

Here's a different sort of economic stimulus: More people are panning for gold in western North Carolina, USA Today reports.

Apparently, the tough economic times and high gold prices are boosting interest in finding gold flakes and tiny nuggets, the newspaper reports.

The Cotton Patch Gold Mine in New London and Reed Gold Mine in Midland are still yielding some gold for persistent and patient panners.

"You get a piece of gold in every six or seven pans," says Michael Scott, an interpreter at the Reed Gold Mine, a state park that was the site of a gold rush in 1799. "Nobody's getting rich."

Read the full story here.

Gathering recession stories in a van

Our sister newspaper, The Charlotte Observer, has a piece this morning about an Oregon artist traveling the country in his van, collecting stories about the recession.

Aaron Heideman is stopping in 22 cities to gather stories on a huge banner for his "The Man in the Van Project."

“The economic downturn forced me to close my business and re-enter corporate America…but I am choosing not to participate in the recession,” one man wrote.

Scrawled another: “I've lost my job, became homeless, been robbed, abused, discriminated, arrested and neglected. There is no compassion in America.”

Read the full story here.

How do you track the economy?

While we sometimes tend to focus on the big national indicators like unemployment and housing starts, we also know that you don't have to be an economist to make shrewd observations about the economy.

So now we're asking you to play the real-world economist for a moment.

What everyday things do you watch for signs that the economy may be improving? And, what have you been seeing?

Are people buying Bud instead of Stella in the beer aisle?

Do your kids get invited to fancy exclusive birthday parties anymore?

And what are the lines like at restaurants nowadays?

Please share your thoughts, and we may publish some of them in an upcoming edition of Work & Money. Also, please provide your full name and the town in which you live. 

Martin Marietta stock falls on weaker forecast

Shares of Martin Marietta Materials fell in morning trading after the Raleigh-based producer of crushed rocks and other construction materials warned that  would weaken its 2009 earnings.

The company now predicts earnings of $2.70 to $3.30 a share. That’s down from the $3.70 to $4.15 it estimated in early May.

Martin Marietta has been cutting costs, including hundreds of jobs, to offset a slump in demand for its products.

“We continue to adjust our operating plan in response to the current economic environment with a strict focus on cost containment,” CEO Stephen Zelnak Jr. said in a prepared statement.

The company does expect to get a boost from federal stimulus money aimed at improving roads, bridges and other infrastructure. But the pace of those projects is moving slower than expected, Zelnak said.

He added that projects funded by stimulus money should start to pick up in the second half of the year and into 2010.

Martin Marietta’s stock, which has fallen nearly 20 percent in the past year, dropped $2.29 to $74.81 this morning.

Great Depression revisited

The Great Depression might have delayed Rosa Mae Perry’s education, but she didn’t let hard times stop it.

“It took a lot of nerve to get on that school bus for the first time, but after that the ice was broken,” said  Perry, 93, who was 20 when she could quit working long enough to go back to school.

As bad as the worst economic times since the Great Depression are, they pale in comparison to a devastated economy during a agrarian age without modern conveniences.

“We learned to live according to the times,” said Perry, who lives with her husband, Herbert, at Robinwood Apartments in Wendell.

Born into a sharecropping family in Franklin County, Perry stayed home to help out even though she made the top grades in her seventh-grade class, she said.

But the Great Depression hit. The stock market crashed, banks failed and people lost their jobs. The Bakers —- Perry’s family  — could benefit from farm life, raising their own food from the fields and farm animals, but they were not unscathed.

The  family’s mules for plowing the fields were repossessed, and the owner of their farm mortgaged crops to businesses to pay for equipment and fertilizer, she recalled.

“I made myself happy with all that I would do,” said Perry. “I worked hard, and I read everything I could get my hands on.”

Perry’s father and brother got a job with the President Franklin Roosevelt initiative, the Works Progress Administration, building N.C. 98 between Wake Forest and Bunn.

The family was able to see its way clear for Rosa to return to school when she was 20 and she was encouraged to do so by her brother, Roger R. Baker.

For Clayton Whitley, 83, of Zebulon, the Great Depression was his childhood.

“They were hard times for us the whole time,” he said. “Everybody was poor except people who had inherited stuff.”

Whitley recalled life in the 30s without many of the conveniences of electricity and plumbing.

“We were not alone,” he said.

 Most eastern Wake County families raised 80 percent of their food, he said, so that kept them from going hungry.

Yet Whitley’s family lost their Nash County farm during the depression, but not their fight, Whitley said. His grandmother, Mary Brantley, had a little land. So his father bartered logs cut from his farm for timber, and he and neighbors built a small house for the family of 14 on his mother-in-law’ property.

After he lost his farm and when carpentry work was slim, Whitley’s father worked in a WPA project, Whitely recalled.

Whitley remembers that few people had cars, and some made “Hoover carts,” named after Herbert Hoover, the president many blamed for the depression.

The mule or horse-drawn buggies were made from an axle and wheels from a car that wasn’t in working order.

800 layoffs in Durham announced in March

Each month the Employment Security Commission compiles a list of announced layoffs and business closings.

The survey is based on newspaper accounts and information supplied to the Employment Security Commission of North Carolina by the employing units experiencing the closings and layoffs.  It’s not comprehensive, but it’s one marker local business leaders use to gauge the local economy.

In March, Durham County had 845 announced layoffs. They were IBM Corp., 334 layoffs; AW North Carolina, 500; and Duke Corporate Education,11 . In addition, Gl;axoSmithKline announced a restructuring in its customer response center and the Durham Bulls announced cost-cutting measures.

Staff in the Employment Security Commission neither analyze nor evaluate the accuracy of these reports. They can be found on the ESC
Home page (ncesc.com) by selecting Labor Market
Information/Industry Information/"Announced Business Closings &
Permanent Layoffs."

Biden visits N.C.

See photos from Vice President Joe Biden's visit to N.C. to promote economic initiatives. Staff photos by Corey Lowenstein.

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