Companies are starting to delay hiring and spending out ofconcern that Congress won't reach a compromise in time to avoidautomatic tax increases and budget cuts that would pull billions ofdollars of purchasing power out of the economy.

Faced with a so-called fiscal cliff of more than $600 billion inhigher taxes and reductions in defense and other governmentprograms in 2013, U.S. companies are pulling back, though thedeadline for congressional action is more than six months away.

The best strategy for companies to follow when confronted withsuch uncertainty ahead of Dec. 31 is to “stay lean and keep yourinventories taut,” Sandy Cutler, chief executive officer ofindustrial equipment-maker Eaton Corp. in Cleveland, told aconference May 31.