Companies increased their cash and short-term investment balances in the second quarter, according to the AFP Corporate Cash Indicators (AFP CCI), a quarterly study that measures recent and anticipated changes in U.S. corporate cash balances. Quarter-to-quarter, 38 percent of reporting organizations had greater cash balances at the end of 2Q12 than they had at the end of 1Q12, compared to 29 percent that shed cash during the period.

The difference, a net index reading of +10, was down 3 points from the March 2012 survey and off 14 points from six months earlier.

Year-over-year, cash hoarding increased, with 40 percent of companies reporting larger balances at the end of 2Q12 than they had at the end of the 2Q11, with a resulting net index reading of +15, up two points from the April 2012 survey.

Over the next three months, treasurers expect the growth in corporate cash balances to continue to slow, with only 31 percent of organizations anticipating a build-up of cash reserves and 27 percent expecting to reduce balances.  The net index reading of +4 is down 4 points from the April 2012 survey and 13 points from a year earlier.