After a period of generally sustained economic optimism, CFOs are entering 2022 with a diminishing view of the economy and business prospects, according to Deloitte’s newly released Signals survey for 1Q22. In the face of looming geopolitical tensions and rising inflation, CFOs indicated declining expectations across several key business indicators. The survey closed on Feb. 25, 2022, the day after Russia invaded Ukraine.
The 36% of CFOs expecting North America’s economy to be better dropped from 45% in the prior quarter, according to the CFO Signals report. Similarly, 26% of CFOs said they expect Europe’s economy to improve a year out, a sharp decline from 40% in 4Q21. There was also a drop in the percentage of CFOs expecting Asia’s economy, excluding China, to improve in 12 months, at 33%, compared to 37% in 4Q21.
Chief risk concerns
As in 4Q21,…