(Bloomberg) — North America’s chief financial officers are the most optimistic since the first quarter of 2022, even as global growth cools.
(Bloomberg) — North America’s chief financial officers are the most optimistic since the first quarter of 2022, even as global growth cools.
Net optimism for their own companies’ financial prospects climbed in the third quarter, as CFOs raised their annual growth expectations for revenue, earnings and domestic hiring but lowered them for dividends, capital investment and domestic wages, a Deloitte survey showed Tuesday. They see earnings up about 8.3% this quarter, nearly doubling from the prior quarter’s expectations, the report shows.
Optimism was led by a range of factors including better labor availability, softening inflation and adopting new technologies, including generative AI. More than 40% of firms said they’re experimenting with generative AI while 15% are building it into their strategy. That outlook is emboldening executives, with 41% saying now is a good time to take greater risks, up from 33% in the second quarter and higher than the two-year average.
The optimism among those in the C-suite is notable as many developed economies are set to cool into next year following unprecedented central bank tightening. Executives are also buoyed by a labor market that’s far less tight now than last year, with wage gains slowing and competition for workers dying down. Nearly half of respondents said they hope to increase margins, efficiencies and productivity.
The findings are based on a survey of 116 CFOs in the US, Canada and Mexico conducted July 31 to Aug. 20.
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