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Financial executives at U.S. companies remain concerned about the current economy and are less confident about economic growth in 2012, according to the latest Bank of America Merrill Lynch CFO Outlook survey.

Of the 600 executives at U.S. companies who were surveyed in the annual report, only 38 percent said they expect the U.S. economy to expand in 2012, down from 56 percent in last year’s survey and 66 percent the previous year.

Regarding the current economy, optimism earlier this year has ebbed, with CFOs now giving the economy a score of 44 out of 100, down from last year’s score of 47 and equal to the lowest score in the survey’s 14-year history.

Despite those concerns, most CFOs don’t expect their companies to reduce workforces in 2012. Only 7 percent predicted layoffs, compared with 6 percent last year. Meanwhile, 48 percent of executives said they expect their companies to maintain the current number of employees, while 46 percent said they expected to hire employees. Both of those responses are similar to last year’s survey.

“Without question, many CFOs are hoping for more positive signs of consistent economic stability and growth – in the U.S. and abroad,” said Laura Whitley, head of Global Commercial Banking at Bank of America Merrill Lynch. “While they remain cautious, it is encouraging to see that reservations about the economy won’t translate to reductions in the overall workforce, and that CFOs are staying the course while waiting for the economy to improve.”

Another reassuring sign amid challenging economic conditions: More CFOs this year say that more credit is available, and fewer CFOs say they expect the cost of capital to increase in 2012.

When asked if their lenders have increased the credit available to their companies, 36 percent of executives said yes, up from 28 percent last year. In addition, only 21 percent of CFOs said they expect their cost of capital to increase, down from 27 percent last year.

“These responses support what we’ve heard from many Bank of America Merrill Lynch clients,” Whitley said. “Those companies that are considering additional capital feel confident that we can provide financing – and at an affordable rate – as needed.”

The survey also finds that the top financial concern for their own companies was healthcare costs, chosen by 56 percent of  CFOs. That was followed by energy costs and consumer confidence, both at 43 percent; cash flow at 42 percent; and revenue growth at 40 percent.

Only 18 percent of CFOs expect to participate in a merger or acquisition next year, down from 26 percent a year ago, finds the survey.

Despite economic uncertainties, there haven’t been widespread cuts to research and development. More than three-fourths of CFOs said their R&D expenses were the same or higher than pre-recession levels, similar to last year’s response.

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