CFOs optimism wanes amid rising geopolitical tension, inflation and supply chain issues

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CFOs are less optimistic about the state of the economy and future business prospects entering 2022 compared to the beginning of last year, according to Deloitte’s latest CFO Signals survey.

Only 38% of CFOs are more optimistic about their company’s financial prospects compared to 57% at the start of 2021.

Inflation, geopolitical tensions, government policies and regulations are among the top external concerns for senior finance leaders, with the emergence of new Covid-19 variants also raising concerns.

The myriad of headwinds has lowered CFOs year-on-year growth expectations for earnings, which have dropped to 9.2% in the first quarter (Q1) of this year, down from 9.6% recorded in the previous quarter, as well as capital spending expectations which have fallen from 5.8% to 5.3% over the same period.

Unsurprisingly, confidence in the world’s economy has also fallen. The recent events in Ukraine and heavy economic sanctions placed on Russia, mixed…

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