More organizations were building cash and short-term investment balances in the second quarter than in the first, according to theAFP Corporate Cash Indicators(AFP CCI), a new quarterly study that measures recent and anticipated changes in corporate cash balances, primarily in the U.S.

Quarter-to-quarter, 40 percent of reporting organizations had greater cash balances at the end of 2Q11 than they had at the end of 1Q11. Year-over-year, 47 percent had larger balances at the end of 2Q11 than they had at the end of the 2Q10. Looking ahead, 36 percent expect to further build cash and short-term investment balances during 3Q11 compared to 19 percent that expect to reduce balances.

The AFP CCI is a new research initiative that will provide treasury and finance professionals, policymakers and market analysts with timely data on a determinant of economic activity: corporate cash. The AFP CCI is maintained by the Association for Financial Professionals (AFP), a professional society that serves corporate finance departments globally.

"By tracking the aggregate cash holdings of a representative subset of members on a predictable schedule, we will be able to provide an early look at corporate sentiment," saidJim Kaitz, AFP's president and CEO. "We know from the response to the AFP Liquidity Survey that this information is widely sought by the business community. AFP is uniquely positioned to provide this resource."