Key Takeaways:

  • CFO confidence fell sharply in the second quarter, weighed down by economic headwinds and geopolitical uncertainty, according to a report released Tuesday by Deloitte.
  • In the Big Four firm's survey, about 33% of CFOs said it was a good time to take on more risk, down significantly from 60% in the first quarter and the lowest level since the third quarter of last year.
  • "The survey shows that CFOs are becoming more risk-averse," Deloitte said in a press release.

Deep Dive:

Since Donald Trump returned to the White House, the sweeping changes in U.S. policy have continued to disrupt the business community. His administration's erratic tariff measures, in particular, have heightened global uncertainty and kept business leaders on edge.

On Tuesday, President Trump said he plans to impose a 50% tariff on copper imports and "very high, up to 200%" tariffs on pharmaceutical products, as reported by Supply Chain Dive, a sister publication of CFO Dive. The day before, the president began unveiling tariff rates for certain countries, ranging from 25% to 40%, which will take effect after a 90-day pause period for specific countries.

Deloitte's research found that only 23% of CFOs believe the North American economy is currently "in good shape," down from 50% in the first quarter. Respondents lowered their expectations for revenue, earnings, and capital expenditures.

"Growth expectations for all key operating metrics declined," the press release issued Tuesday said.

Economic factors topped the list of external risks CFOs are focused on, cited by 53% of respondents, followed by cybersecurity (51%) and interest rates (43%).

Deloitte surveyed 200 CFOs from the United States, Canada, and Mexico last month.