Fears among top corporate CFOs regarding shaky consumer demand have reached a six-quarter high, according to the latest CNBC CFO Council survey. For the first time since early 2023, more than half of the surveyed CFOs identified consumer demand as the primary external risk to their business. This 54% figure represents a significant increase from 18% a year ago and 37% last quarter, reflecting broader market trends such as fast-food chains introducing value menus and car dealers struggling to move inventory.
During a recent anonymous CFO Council call, a financial services CFO highlighted that while consumers continue to travel and dine out, the transaction values for these activities are declining. The CFO noted that consumers are finding less expensive ways to meet their needs, signaling a shift towards cost-conscious behavior. Food sector CFOs echoed this sentiment, emphasizing their focus on offering value, with one even describing the current situation as a “value war.”
Despite their concerns about consumer demand, CFOs’ views on Federal Reserve policies and the interest rate environment have remained relatively stable. Notably, 70% of CFOs now rate the Fed’s performance as “good,” the highest level ever recorded. However, nearly 92% of CFOs now expect the 10-year yield to stay above 4% through the end of the year, a significant shift from last quarter when almost half anticipated it would fall below 4%.
