Bonuses at two-thirds of companies-survey

NEW YORK (CNNMoney.com) -- Just over two-thirds of companies will give annual bonuses this year, despite signs of a broad economic slowdown, according to a survey released Thursday.

But only 3 percent of companies surveyed said they would increase bonuses this year, said job placement company Challenger, Gray & Christmas, which issued the survey.

The good news is that few - only 3 percent - said they'd be canceling bonuses for 2007.

Just over half - 55 percent - of the companies surveyed said they planned to award bonuses at year's end, while 14 percent distribute bonuses at other times of the year.

"Yearend bonus recipients can thank a relatively robust economy that lasted through the first three quarters," said John A. Challenger, CEO of Challenger, Gray & Christmas, in a statement.. "Even over the last couple months, the impact of the housing market collapse appears to be contained in the home-building and financial sectors."

"As a result, bonuses appear to be intact. This probably will not be the case a year from now," he added.

Challenger said consumer and business spending will slow in 2008 due to the housing slump that has made it more difficult to borrow money.

"Lower profit margins could lead to lower year-end bonuses or no bonuses at all," he added.

The survey included 100 respondents, and was conducted by e-mail in October.