CFO Optimism Declines Amid Economic and Geopolitical Turmoil

North American corporate finance leaders’ confidence dropped considerably in the year’s second quarter as economic and geopolitical uncertainties persist, according to Deloitte survey results.

Only one in three chief financial officers said they think it’s a good time to take on greater risk as they seek to grow their business, down from 60% earlier this year, according to the Big Four accounting firm’s latest CFO Signals Report released Tuesday. The June survey went to 200 CFOs in North America who work at organizations with at least $1 billion in revenue.

The CFOs accompanied their increased caution with lowered projections for revenue, earnings, and capital investments.

The results contrast with another Deloitte survey that showed UK CFOs’ risk appetite grew in the second quarter, though it still remained lower than that of their North American counterparts.

Seventeen percent of UK leaders said in a survey released Monday it’s a good time to take greater risk onto their balance sheets, up from 12% last quarter.

The uptick in the UK was accompanied by a slight shift away from defensive strategies like reducing costs and increasing cash flow. CFOs were more likely to prioritize expansionary moves like introducing new products compared to any point since fall 2023. Sixty-six CFOs representing major companies participated in the Deloitte UK survey, which was also fielded in June.

Both cohorts of finance leaders surveyed by Deloitte cited the economy and global politics among the top risks to their businesses.

Still, UK executives’ level of concern about geopolitical risks fell slightly in the second quarter, which could reflect an easing of trade-related fears in light of the UK-US trade and tariff-related framework announced in early May, Ian Stewart, chief economist at Deloitte UK, said in a statement.

In North America, only 23% of CFOs rated the regional economy as “good now,” compared to 50% in the firm’s first-quarter survey. Internally, they cited hiring or retaining talent, lacking agility, and managing costs as top concerns for the second quarter, according to the latest results.