Key takeaways
-
Fifty-seven percent of CFOs rate the current North American economy favorably, up from 34% in 2Q23 and marking the highest reading since 1Q22. Net optimism for CFOs’ own companies’ financial prospects also climbed to +22 from +6 last quarter.
-
CFOs raised their year-over-year growth (YOY) expectations for revenue, earnings, and domestic hiring, with earnings reflecting the greatest increase.
-
More than half (56%) of CFOs indicated that U.S. equities are overvalued, as opposed to 39% saying the same in 2Q23.
-
Forty-one percent of CFOs say that now is a good time to take greater risks. This represents an increase from last quarter’s 33% and hovers above the two-year average of 40%.
-
Talent availability and retention once again topped CFOs’ list of internal concerns, followed by execution and prioritization of business strategies.
-
Concerns over geopolitics along with policies and regulations stood out as CFOs’ most worrisome external risk.
-
Forty-two percent of CFOs said their organizations are experimenting with generative artificial intelligence (GenAI), though they acknowledge talent resources and capabilities are the greatest barrier to adopting and deploying GenAI.
Why it matters to CFOs
Each quarter, CFO Signals™ tracks the thinking and actions of leading CFOs representing North America’s largest and most influential companies. Since 2010, the survey has provided key insights into the business environment, company priorities and expectations, finance priorities, and CFOs’ priorities. Participating CFOs represent diversified, large companies, with 85% of respondents reporting revenue exceeding $1 billion. Just over one-quarter (27%) are from companies with greater than $10 billion in annual revenue.
Economic outlook
CFO sentiment toward current conditions rose in three of the five economic regions covered in the survey. The exceptions are China and Asia (excluding China). In China, only 8% of respondents of…
Read the full article here