Economic optimism among U.S. chief financial officers has plunged to its lowest point in over two years, but investment in technology remains strong, according to Grant Thornton’s latest CFO survey.
Just 47% of CFOs expressed optimism about the U.S. economy in the first quarter of 2025—a 21-point drop from the previous quarter—amid growing uncertainty around tariffs and labor markets. It’s the largest quarter-over-quarter decline recorded in the firm’s quarterly survey history.
“Finance leaders have a lot of uncertainty about labor and tariffs and how those are going to affect growth, but they think they can manage through this once they gain more certainty,” said Paul Melville, national managing principal of CFO Advisory for Grant Thornton Advisors LLC.
Despite economic concerns, 226 CFOs surveyed said technology modernization is a top priority. More respondents identified tech upgrades as a key focus for the next six months than cost optimization, continuing a trend seen in recent quarters.
Supply chain confidence also fell sharply, with only 41% of CFOs saying they felt confident in meeting supply needs—down 21 points from the prior quarter and the lowest since the second quarter of 2022.
Confidence in meeting labor needs and controlling costs also dropped by 19 percentage points, falling to 41% and 43%, respectively.
“Planning is becoming incredibly difficult,” Melville said. “Resources are being used in performing a lot of what-if scenarios as opposed to focusing on growing the business.”
As companies scale back long-term strategic investments, the share of CFOs expecting net profit growth rose slightly to 78%, though the projected size of those gains is more modest. Only 29% anticipate layoffs—the lowest level in nearly two years—but retention remains a concern, with just 38% expecting improvements.
CFOs also reported a steep drop in plans to increase sales and marketing spending, falling 18 points to 40%. This coincided with a notable dip in consumer confidence, potentially signaling a broader economic shift.
Digital transformation continues to be a key area of focus. Seventy-one percent of CFOs cited customer experience as a major driver in digital investment decisions. Adoption of generative AI tools for customer engagement rose to 64%, up 19 points in just over a year.
“B2B businesses are working to drive similar experiences to what we get with Uber and DoorDash, but they’re not quite there yet,” said Tony Dinola, principal of Technology Modernization for Grant Thornton Advisors LLC. “A continued focus on customer experience and investment in modern technology will be required to achieve these goals.”
Still, many companies are not fully prepared to reap the benefits of tech investment. One-third of CFOs said their data needs major improvement—or is poorly organized—hindering their digital transformation efforts.
Melville noted that while cost and integration remain key barriers to digital adoption, the benefits outweigh the challenges.
“If you haven’t done anything about digital transformation, you’re going to be in a mess,” he said.
