Economic optimism among finance leaders plummeted in the first quarter of 2025 due to uncertainty over tariffs and concerns about labor needs.

Grant Thornton’s first quarterly CFO survey of the year shows that just 47% are optimistic about the U.S. economy, an unprecedented 21-percentage-point drop from the previous quarter, with pessimism at a 10-quarter high.

However, finance leaders see a way forward through the upheaval. They are steadfast in their commitment to technology modernization as a strategy for delivering a wide range of long-term benefits. Our survey demonstrates that CFOs believe digital transformation can enable them to manage uncertainty, optimize costs and enhance operational efficiency — but companies need to find a way through the current transition and focus on long-term results to achieve those benefits.

The survey showed that confidence in meeting supply chain, labor and cost control goals fell precipitously during the first quarter, but CFOs still largely expect to be able to grow their net profits this year. The following strategies can provide long-term results in a period of short-term anxiety:

• Invest in technology to engage your customers
• Enhance your data quality to support digital transformation
• Embrace cloud technology to limit internal infrastructure costs
• Invest in your people during a time of labor uncertainty
• Re-evaluate supply chains and operations sites in response to tariffs
• Consider pricing and product options if tariffs affect your expenses
• Intensify M&A due diligence in areas such as supply chain and workforce

With increasing technology benefits as the foundation, companies can keep advancing toward long-term targets even as they face high uncertainty and low economic optimism in the short term.

Overview

As tariff announcements multiplied — and labor worries increased — finance leaders’ enthusiasm over the U.S. economy fell dramatically in the first quarter of 2025, according to Grant Thornton’s latest CFO survey.

CFO optimism dropped an unprecedented 21 percentage points from the previous quarter to 47% — almost identical to the 46% optimism mark in 2024 Q3, which was during a point of extreme uncertainty right before the 2024 U.S. election. The 29% of finance leaders who are pessimistic, meanwhile, was a 10-quarter high.

At the same time, our 226 survey respondents showed that CFOs’ endorsement of technology modernization as a strategy to advance their businesses remained as strong as ever. Even though economic optimism plummeted, technology upgrades edged out cost optimization as the top focus for the next six months.

The survey results show that even in a time of great economic upheaval, technology improvements can provide a reliable return on investment — while also potentially helping deal with the uncertainty.

“Digital transformation allows you to be more proactive in terms of scenario planning and how you can cope with this continuing shift of environment,” said Grant Thornton CFO Advisory Services National Managing Principal Paul Melville. “Digital transformation helps you manage some of this.”

The full report can be found here.