Finance Chiefs Navigate Stormy Economic Seas
Latest Survey Reveals Shift in Sentiment
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.
Key Findings
- Growth Expectations Drop: 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.
- Risk Appetite Declines: Just one in three CFOs believe it's a good time to take on more risk.
- Capital Market Valuation: Opinions are split between the market being undervalued or overvalued.
Drivers of Uncertainty
According to Steve Gallucci, global and U.S. leader of Deloitte’s CFO Program, the uncertainty stems from a mix of policy, geopolitics, the economy, and capital markets. 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.
Strategic Responses
In response to these challenges, CFOs are focusing on:
- Growth Drivers
- Managing Controllable Risks
- Staying Active in Mergers and Acquisitions
- Prioritizing Technology and Cybersecurity
- Cautious AI Adoption
- Addressing Internal Risks like talent availability, lack of agility, and cost management.
Conclusion
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.