Dive Brief:
- Just over half (51%) of CFOs surveyed by Grant Thornton in the fourth quarter expected their company’s operations expenses to increase over the next year, up from 35% who responded this way three months earlier, the consulting firm said Thursday.
- The latest opex finding, which marks a 20-quarter high, shows that a majority of finance leaders are now ready for strategic spending after a prolonged period of belt-tightening, Grant Thornton said.
- “They’re deploying capital now because they need to move forward with these strategic initiatives, even if rates aren’t as low as they’d like,” Mike Desmond, the firm’s audit and assurance growth leader, said in a press release.
Dive Insight:
The results likely reflect anticipated tax savings from the One Big Beautiful Bill Act as well as growing impatience with delayed interest rate cuts, Grant Thornton said.
Almost half (44%) of CFOs expected the OBBBA to yield benefits, while just 18% said it will harm their financial position.
The portion of finance chiefs planning to cut costs on long-term strategic initiatives dwindled to 28%, down from 36% last quarter. Cash and liquidity fell as one of the top areas of focus for CFOs, as did cost optimization.
Of the more than 230 finance leaders polled by Grant Thornton, 52% expressed optimism about the U.S. economy — nearly identical to last quarter’s level. It’s a departure from the dramatic swings in optimism that followed the election a year ago (68%) and the tariff announcements in Q2 (39%), according to the Thursday release.
“CFOs have become accustomed to swings in the market, and they’ve developed enough resilience where they’re not afraid to invest in growth at this time,” said Paul Melville, national managing partner of accounts and growth for advisory services for Grant Thornton, said in the release.
The research aligns with a recent Deloitte report saying that 59% of CFOs see now as a good time to make bigger bets, compared to 12% in the year-earlier quarter.
