CFOs have shown increased optimism about the economy following the recent presidential election, according to The CFO Survey. Conducted by Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta, the survey revealed concerns among chief financial officers about monetary policy, inflation, political climate, and tariffs.
The survey included responses from 515 CFOs, with half participating in a pre-election poll that closed on November 4th and the other half in a post-election poll conducted from November 6th to 19th. Results indicated an increase in optimism about their firms’ financial prospects from an average score of 70.1 before the election to 72.4 afterward. For large companies, this figure rose to 76.0 post-election.
John Graham, a finance professor at Duke’s Fuqua School of Business and academic director of the survey, commented on these findings: “This jump in optimism reflects the resolution of uncertainty about the presidential election, combined with a sense that the tax and regulatory policies of the new administration will broadly benefit the corporate sector.” He also noted a similar surge when President Trump was first elected in 2016.
Despite increased optimism, CFOs expressed heightened concerns regarding several issues. Prior to the election, hiring and retaining employees was their top concern. Post-election priorities shifted towards monetary policy as their primary worry, followed by labor availability, inflation, political climate, and tariffs—a concern not previously listed among their top ten.
The survey introduced a CFO Policy Importance Index to measure key policy issues facing companies. Regulatory policy ranked highest with a value of 100 after the election; corporate taxes followed at 86; monetary policy at 83; fiscal spending at 65; individual taxes at 50; and health care at 43.
These findings are part of The CFO Survey’s ongoing efforts to gauge business sentiment across sectors like manufacturing and construction which saw significant increases in economic outlook following recent electoral outcomes.
