CFOs express negative economic sentiment

Almost three-fourths of CFOs have a negative view of the current global economy and its impact on their organization’s forecast.

About 55% of finance leaders have a “moderately negative” view of the economy, and 19% feel “significantly negative” amid growing economic and policy uncertainty, according to The CFO Alliance’s Quick Pulse Survey. That sentiment is influencing their decision-making.

The CFO Alliance report is based on responses of nearly 300 emerging and midmarket CFOs earlier this month.

Many finance leaders are shifting priorities because of tariffs and market volatility: 35% are emphasizing scenario planning and financial modeling, and 29% are focused on liquidity and working capital management.

About half of CFOs said it will take about six months before there is clarity regarding U.S. trade and tariff instability; 20% said it will take 12 months; and 18% said more than 12 months. In the most recent AICPA & CIMA Business & Industry Economic Outlook Survey, released in March, tariffs were one key reason for a sharp decline in sentiment from the fourth quarter of 2024.

In The CFO Alliance survey, almost 30% of finance leaders are not planning any immediate reaction in response to the current market volatility, but 18% are reevaluating vendor contracts or supplier relationships, and another 18% are adjusting pricing models.

Regarding talent strategy over the next year, 70% of CFOs are still evaluating their options, and 18% have instituted hiring or compensation freezes.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.