Finance Chiefs Navigate Stormy Economic Seas

The latest report from Deloitte's CFO Signals survey paints a picture of finance leaders treading carefully in uncertain times. With a confidence score of 5. 4, down from 6. 4 in the previous quarter, it's clear that optimism is taking a backseat. The survey, which gathered insights from 200 finance leaders in North America, reveals a significant drop in growth expectations across the board. Only 23% of CFOs now rate the North American economy as "good, " a stark contrast to the 50% who felt optimistic just a quarter ago. This shift in sentiment is reflected in their cautious approach to risk, with just one in three CFOs believing it's a good time to take on more. The capital market's valuation is also a point of contention, with opinions split between it being undervalued or overvalued. So, what's driving this uncertainty? According to Steve Gallucci, global and U. S. leader of Deloitte’s CFO Program, it's not just about tariffs. It's a mix of policy, geopolitics, the economy, and capital markets that's making CFOs less bullish. He points to the U. S. presidential election as an example, where uncertainty led to a dip in optimism, which then spiked once the election was settled. In response to these challenges, CFOs are focusing on growth drivers, managing controllable risks, and staying active in mergers and acquisitions. Technology and cybersecurity remain top priorities, with CFOs moving cautiously on AI adoption. Internal risks like talent availability, lack of agility, and cost management are also high on their agenda. The survey highlights a finance leadership community grappling with uncertainty, actively working towards solutions to weather the storm and position their companies for future growth. It's a testament to their resilience and strategic thinking in the face of adversity.