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Finance executives have a dimmer outlook for the economy than they had a year and a half ago as they confront higher energy prices and the prospect of elevated inflation.
According to a survey published Wednesday by U.S. Bank, 39% of finance executives have a negative one-year outlook for the economy, up from 32% at the end of 2024, the last time the bank conducted the survey. Twenty-one percent of respondents have a negative three-year outlook, up from 12% just over the same timeframe.
Finance leaders hold increasingly pessimistic views about their own businesses, as well, with a greater share saying they have negative one- and three-year financial outlooks, according to the survey.
The results diverged by company size. For instance, 57% of finance executives at companies with more than $5 billion in annual revenue—the largest companies in the survey—said they feel positive about the U.S. economy over the next 12 months. Only 24% of respondents from companies with between $100 million and $249.9 million in annual revenue—the smallest in the survey—said they feel the same way.
The growing sense of pessimism, however, hasn’t resulted in a pullback in borrowing, capital investments or acquisitions, according to Stephen Philipson, U.S. Bank’s vice chair and head of wealth, corporate, commercial and institutional banking. Executives have grown more accustomed to market volatility, and have continued to pursue opportunities amid fears of an economic slowdown and geopolitical risks, he said. “It’s not necessarily matching their actions, because we see lots of activity,” Philipson said.
The survey, conducted between March 19 and April 14, included 1,000 finance leaders, with titles such as chief financial officer, vice president of finance, chief accounting officer and treasurer.
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