Chief financial officers (CFOs) and fund managers at large-scale companies are the most optimistic they’ve been in four years, results of two closely-watched polls released this week reveal.
Deloitte’s North American CFO Signals survey gauges the sentiment of more than 200 chief financial officers at capital markets companies with at least $1 billion in revenue. It asks CFOs to rate business and economic confidence and expectations on a scale of 1 to 10.
Bank of America’s (BofA) survey measures confidence among more than 200 fund managers overseeing at least $500 billion in assets.
The latest results of both surveys place confidence at the highest level since 2021.
Deloitte reports that CFO sentiment “soared” in the fourth quarter and now “falls squarely in high confidence territory”:
“The CFO confidence score rose for the second straight quarter. The 6.6 mark this quarter is substantially higher than the Q3 reading of 5.7—and pushes the rating up from medium to high confidence. For perspective: 6.6 is the highest confidence score since late 2021, during the post-COVID-19 pandemic recovery.”
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“Among finance chiefs surveyed, confidence soared this quarter to 6.6— the highest reading in four years. While this score is still lower than the record score of 7.2 in Q3 2021, it falls squarely in high confidence territory.”
Thirty-six percent of CFOs surveyed rate the current North American economy as very good or good, up from 19% last quarter, and 55% expect it to be “better in a year.”
The results bode well for the U.S. economy, as they signal increased hiring and spending in the coming months.
Likewise, the Bank of America’s survey shows that fund managers are “the most bullish they've been in three-and-a-half years,” according to a review of the proprietary results by Business Insider:
“The survey showed that 57% of fund managers expect the economy to cool while only 3% believe that a recession is looming, a record low for that figure. Thirty-seven percent don't expect the economy to slow at all.”
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“The number of fund managers who expect corporate profits to rise reached 29%, the highest since April 2021.”
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"On the macro…FMS global growth expectations rose to the most optimistic level since Aug'21 (net 18%, up from net 3%)."
Additionally, fund managers’ cash levels are reportedly at the lowest level (3.3%) in the history of the survey, which reflects high confidence in investment opportunities.
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