By the numbers:

Year-over-year revenue growth expectations fell to 5.0% from 5.5% last quarter.
Earnings growth projections saw a sharper decline, dropping to 7.8% from 9.9%.
Expectations for capital spending growth were nearly halved, falling to 6.0% from 10.1% in Q1.
Domestic hiring growth expectations also softened, dipping to 1.9% from 2.6%.

The big picture: While a majority of CFOs still view their own company's prospects favorably, their assessment of the broader North American economy has soured. The percentage of CFOs rating the current economy as good or very good dropped from 45% to 37%.

Talent availability and retention remains the most cited internal risk for CFOs, a persistent challenge in the post-pandemic labor market.
Externally, CFOs pointed to geopolitics and policies of the presidential administration/Congress as their top worries.

Zoom in: The survey highlights a significant focus on Generative AI, though with a degree of caution.

Nearly 80% of CFOs report their organizations are either experimenting with or have begun implementing GenAI technologies.
The primary goals for using AI are driving efficiencies in the finance function, IT, and marketing.
Despite the high rate of experimentation, only 12% of CFOs feel their organization is highly prepared to manage the associated risks of the technology.

What to watch: The significant drop in capital spending intent is the most notable data point. It signals that while companies are not forecasting a recession, they are preparing for slower growth and may delay major investments until the economic and political picture becomes clearer later in the year. This could translate to delayed or smaller-scope projects for consulting firms.

SURVEY: CFOs Lower Growth Expectations Amid Economic Uncertainty

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