Despite economic uncertainty in 2024, CFOs remain optimistic, with 80% expressing a positive outlook, according to the CFO Business Sentiment Index.
CALIFON, NJ, UNITED STATES, February 10, 2025 /EINPresswire.com/ -- Despite a rocky 2024, Executive confidence held steady according to the CFO Business Sentiment Index, published by CFO Intelligence.
Overall, despite fears of a hard economic
landing, there was little change in the outlook for the national economy — with 80% of the executives polling “positive” in January 2024. That compares to 77% in December 2024, thanks to hopes for a pro-business presidential administration and Congress.The buoyant outlook abated somewhat on a micro level, though. At the start of 2024, 100% of executives were forecasting growth in their own verticals, but that dropped to only 69%, apparently reflecting concerns over the Fed’s stall over interest rate trims.
More executives are worried about getting qualified employees (7% in December, compared to none in January), but fewer see China as a threat (6%, down from 14% in January). Supply chain bottlenecks continued to be a flashpoint for 5% of respondents, up from none in January.
As more employees returned to the office, demand for real estate rose through the year, with 34% of respondents planning to increase their footprint in December (up from 20% in January), while only 19% plan to shed space (edging down from 20% at the start of the year).
Inventory appetite was a weak point, as only 38% planned to increase on-hand stock in December, down from 60% in January. And M&A forecasts plunged, with only 35% of CFOs seeing a combination in their company’s future, down from 60% in January.
Hiring plans stayed relatively flat: 39% of CFOs in December planned to expand their workforce, compared to 40% in January.
“The mixed bag of trends through 2024 — and uncertainty around 2025 illustrates the need for CFOs to be aware of their environment and ready to respond to changing circumstances,” notes Andrew Zezas, Zezas, Host, Publisher & CEO of CFO Intelligence magazine. “Volatility can present significant opportunities for CFOs who are well-prepared. By maintaining a strong focus on cash flows, CFOs can navigate through uncertain times and capitalize on market fluctuations to engage in strategic investments and M&As. This proactive approach allows them to enhance their company's financial stability while positioning for growth.”
Advanced real estate planning “can also enhance a company's ability to prepare for negotiations and improve outcomes in various transactions, including acquisitions and restructuring,” adds Zezas, who is also a Strategist & CEO of Real Estate Strategies Corporation. He has advised corporate occupants on real estate and M&A matters since 1985. Results of the complete Annual CFO Business Sentiment Index and informative business articles are available at CFOIntell.com.
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