Take a risk? CFOs say now is not a good time
Add Axios as your preferred source to
see more of our stories on Google.
Here's a stunning stat: Only 12% of chief financial officers say that now is a good time to take greater risks, according to a Deloitte survey out Wednesday morning.
Why it matters: This could be an indicator of an economic slowdown to come.
- Deloitte surveyed 200 CFOs at companies with at least $1 billion in revenue. They have a big impact on the economy.
- If they're pulling back on taking risks — think opening up new lines of business, building new plants, making acquisitions — that can translate into slower growth for the economy overall.
Zoom in: Deloitte's survey took place amid huge political turmoil in the U.S., a particularly uncertain moment in time.
- The survey began on July 17, four days after the first assassination attempt on Donald Trump, and as it continued Joe Biden dropped out of the presidential race (July 21). When Deloitte wrapped it up (July 29), Kamala Harris still hadn't officially received the Democratic nomination.
- 52% of respondents ranked geopolitics, which encompasses the U.S. election, as one of their top external risks.
What they're saying: "Already, the twists and turns in the run-up to the election, along with shifting poll predictions about the outcome, may be setting off alarm bells for CFOs," write the report's authors.
Meanwhile: CFOs were also very pessimistic about the economy.
- Only 14% rated the North American economy as good — down from more than 50% in the first quarter.
What's next: With the Federal Reserve expected to cut rates Wednesday, the CFO vibes may be about to turn around.
