CFOs more upbeat on 2024 U.S. economy
VIRGINIA, UNITED STATES — Chief financial officers are feeling better about the United States’ economic prospects for 2024 compared to recent months, according to a recent Federal Reserve survey.
Their outlook brightened in the fourth quarter, with average optimism rising to 58 on a 100-point scale versus 56.2 last quarter. Views on their own companies’ prospects dipped slightly but remained higher than economic optimism at 67.3.
“The increase in optimism is a positive development for the business outlook for 2024,” said Sonya Ravindranath Waddell, Richmond Fed vice president and economist.
The survey by Duke University and the Richmond and Atlanta Feds polled CFOs from mid-November to December 1.
Their growth projections held up, with median expected revenue growth steady at 5% next year. Forecasts for employment gains rose to 2.7% versus 2.2% last quarter.
Price increases are seen to moderate from about 5% this year to 3-4% in 2024, still faster than pre-pandemic. More than half of CFOs expect their firm’s price growth to stay elevated.
GDP growth expectations for the next four quarters increased to 1.7% from 1.3%.
The survey shows cautious optimism among financial decision-makers on the economy’s path next year. Tighter monetary policy and ongoing labor shortages remain top concerns.
