U.S. CFO Optimism Slips to 60.6 as 4.2% Inflation Reclaims Top Concern
Updated
Updated · CFO Dive · Jun 24
U.S. CFO Optimism Slips to 60.6 as 4.2% Inflation Reclaims Top Concern
3 articles · Updated · CFO Dive · Jun 24
Summary
Duke-Fed’s Q2 survey of 530 finance chiefs showed optimism on the U.S. economy fell to 60.6 from 61.7, with inflation replacing tariffs and trade policy as their biggest worry.
Energy costs drove that shift: about two-thirds of CFOs said elevated oil prices raised unit costs, but only about one-third had increased the prices they charge customers.
If oil averages $120 a barrel through year-end, firms expect unit costs to rise 7.3% and prices 6.7%, implying roughly 90% of higher costs would be passed through.
The survey was fielded from May 18 to June 5, after Middle East tensions and a Strait of Hormuz oil blockade helped push U.S. consumer inflation to 4.2% in May.
Brent later fell below $75 on Wednesday after a preliminary U.S.-Iran deal to reopen the strait, but the survey suggests sustained energy shocks could quickly reignite corporate price increases.