CFO Business Sentiment Index

First Quarter 2025

CFO Business Sentiment Index To identify and provide timely guidance on important trends in business and in the economy, CFO Intelligence gathers insights from CFOs at middle market and enterprise level companies across various industries.

Despite Economic and Political Turbulence, Executives Breathe Easier in the First Quarter Screaming news headlines suggest a turbulent economy, but executives are dismissing many of the gloom-and-doom concerns, according to the latest CFO Business Sentiment Index . One sign of strength is that worries over finding and retaining talented employees — which were prevalent last year — relaxed in the first quarter. In the most recent survey, 27% of respondents say it’s “getting easier” to attract and retain qualified individuals. One of the drivers, however, is likely to be downsized federal workers seeking new positions. And while many CFOs last year were concerned about rising interest rates, no respondents reported worries in March, down from nearly 13% in January. Many were also unfazed about tariffs being levied against trading partners, with 42% saying their firms will be “moderately” impacted, compared to 35% who predict “significant” effects. Another 23% dismissed the tariffs, predicting an “insignificant” impact on their companies. Similarly, nearly three-quarters of executives say that tightened border and immigration policies will have little to no effect on their firms. More businesses are also considering M&As. In March, 54% of CFOs and other executives plan to consider business combinations within the next 12 months, more than double the number reporting that in January. Some other issues prompted more nuanced reactions. For example, even as more companies implement a return-to-office policy — 65% plan on it in March, up from 50% in January — executives have no plans to rapidly expand their facilities portfolios. In March, 89% reported “no changes planned,” up from 75% in January. And only 8% plan increases, down from 25% at the beginning of the year. Stubbornly high interest rates may be influencing their expansion decisions. Supply chains continue to concern CFOs, with 54% saying it’s an issue, up from 36% in January. And nearly 70% of executives do not see their companies increasing inventory levels — this may reflect uncertainty about the direction of the economy, or it could indicate challenges with getting goods. Reflecting their diverse responsibilities, CFOs say they’re splitting their time on such areas as distribution, M&A, and technology (4% each); and human resources and workforce environment, cybersecurity, and sales (about 8% each). The balance of their time is taken up by such issues as “staying competitive,” “margin deterioration,” and other responsibilities. Finally, CFOs appear to be slow to embrace the possibilities of artificial intelligence, with nearly one-third predicting an “insignificant” impact of AI on the operations of their companies. Half see a “moderate” impact, and only 23% say AI will “significantly” reshape their business. In line with those results, more than three-quarters of executives plan only “moderate” investments in technology. This could mean that many remain unaware of the efficiencies and other gains that AI and other tech can deliver. Or perhaps CFOs are just too busy to consider these new tools…for now.

CURRENT DATA (Published April 1, 2025)

In which areas will you, as CFO, have increased focus in the next 12 months?

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Mar 2025

Feb 2025

Jan 2025

1. Over the next year, what areas will you focus on?

To Share your industry & economic insights: Take the 1 minute CFO Business Sentiment Survey CLICK HERE

CURRENT DATA (Published April 1, 2025)

How significantly will AI reshape how your company operates in 2025??

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Mar 2025

Feb 2025

Jan 2025

Moderately Signi fi cantly Insigni fi cantly

How will AI reshape your company over the next 12 months?

CURRENT DATA (Published April 1, 2025)

Will your company increase or reduce the size of its facilities portfolio in the next 12 months?

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Mar 2025

Feb 2025

Jan 2025

No change

Reduce

Increase

What are your plans for your facilities portfolio?

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CURRENT DATA (Published April 1, 2025)

Do you expect attracting and retaining employees over the next 12 months to become easier or harder?

0.0% 20.0% 40.0% 60.0% 80.0%

Mar 2025

Feb 2025

Jan 2025

No change

Harder

Easier

CURRENT DATA (Published April 1, 2025)

How will changes in US border and immigration policy affect your industry in the next 12 months?

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Mar 2025

Feb 2025

Jan 2025

Insigni fi cant Signi fi cant

Moderate No change

Over the next 12 months, how will US Border and Immigration policies affect your compa

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CURRENT DATA (Published April 1, 2025)

Will interest rate changes over the next 12 months positively or negatively affect your company?

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Mar 2025

Feb 2025

Jan 2025

Posi ti ve No e ff ect

Nega ti ve

Over the next 12 months, how will interest rates affect your company?

CURRENT DATA (Published April 1, 2025) How will your company’s inventories change in the next 12 months?

0.0% 20.0% 40.0% 60.0% 80.0%

Mar 2025

Feb 2025

Jan 2025

No change Increase

Decrease

Over the next 12 months, how will your company’s inventories change?

To Share your industry & economic insights: Take the 1 minute CFO Business Sentiment Survey CLICK HERE

CURRENT DATA (Published April 1, 2025)

Does your company plan to increase its focus on M&A in the next 12 months?

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Yes

Jan 2025

Feb 2025

Mar 2025

CURRENT DATA (Published April 1, 2025)

How will the US government’s stance on tariffs and other issues regarding China, Mexico, and / or Canada affect your company?

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Mar 2025

Feb 2025

Jan 2025

Insigni fi cant Signi fi cantly Moderately

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CURRENT DATA (Published April 1, 2025)

Do you expect global, national, or regional supply chain issues to significantly affect your industry in the next 12 months?

Mar 2025

0.0% 50.0% 100.0%

Feb 2025

Jan 2025

Yes

CURRENT DATA (Published April 1, 2025)

Does your company plan to increase its investment in technology in the next 12 months?

0.0% 20.0% 40.0% 60.0% 80.0%

Mar 2025

Feb 2025

Jan 2025

Signi fi cantly No change Moderately Inigni fi cantly

Does your company plan to increase its investment in technology in the next 12 months?

To Share your industry & economic insights: Take the 1 minute CFO Business Sentiment Survey CLICK HERE

CURRENT DATA (Published April 1, 2025)

Will your company require employees to return to the office for 3 or more days each week in the next 3 months?

Mar 2025

0.0% 50.0% 100.0%

Feb 2025

Jan 2025

Yes

Will your company require employees to return to the o ffi ce for 3 or more days each we

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CFOs may take the CFO Business Sentiment Survey from the 1st to the 10th of each month. Share your views each month, learn what your CFO are thinking, and be the first to receive sentiment index results.

If you are already a CFO Intelligence Member or Subscriber, you do not need to subscribe.

We will notify CFO Members and Subscribers each quarter when the survey will be available. CFO Intelligence will not publish names or contact information of survey respondents. CFO Intelligence makes no warranty, representation or statement, express or implied, with respect to the accuracy, availability, completeness or usefulness of the information, contained herein, shall not have any legal liability or responsibility for any loss, damage which may result, whether directly or indirectly, from the supply or use of such information.

The information provided, unless otherwise indicated is the property of CFO Intelligence and has been published with the consent of the survey participants.

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CFO Business Sentiment Index - 1st Quarter 2025