Deloitte Survey Reveals Rising CFO Optimism for 2025

Deloitte's latest CFO Signals survey reveals a surge in confidence among 200 CFOs in the United States, Canada and Mexico, with the CFO Confidence Score reaching its highest level in 10 quarters. The 4Q24 score rose to 5.8, up from 5.0 in the third quarter. This marks the most optimistic outlook among finance leaders since early 2022.

The study, conducted on Nov. 13-25, 2024, surveyed 200 CFOs from companies with at least US$1 billion in annual revenue across North America. It tracks CFO sentiment on key business, financial, and leadership priorities, offering valuable insights into the shifting business landscape.

"As we enter 2025, CFOs are navigating a complex economic environment. While optimism is growing for the North American economy, ongoing challenges such as geopolitical tensions and market volatility require a strategic balance between seizing opportunities and mitigating risks,” says Steve Gallucci, National Managing Partner US CFO Program, Deloitte.

According to the survey, 72% of CFOs expect that the North American economy will improve over the next year, a notable increase from previous surveys. Half of the respondents rated the state of the economy as good, signaling optimism about short-term conditions. A growing sense of hope extends beyond North America, with 37% of CFOs predicting better economic conditions in the European Union in the next year, a significant jump from earlier reports.

This upbeat outlook is tempered by ongoing concerns. While CFOs are more confident about regional economies, 56% still cite the economy as their top external worry, with geopolitical tensions and interest rates also ranking highly. 

A marked shift in risk appetite has also emerged, as 67% of CFOs now see this as a good time to take greater risks, the highest percentage since 2018. Over half of respondents express interest in acquisitions or mergers within the next year, reflecting a shift away from the more cautious approach that dominated earlier quarters.

“This year, finance leaders say they will likely focus on leveraging enterprise risk management and technology-driven insights to drive agility and position their organizations for long-term growth," says Gallucci.

Despite a general sense of optimism, CFOs remain cautious about stock market valuations, with 58% considering US equity markets to be overvalued, while only 30% view them as undervalued.