Economic pessimism among CFOs surged to 46% in Q2 — the highest mark in 16 quarters. Yet instead of retreating, finance leaders are responding with agility, creativity and strategic foresight.

According to Grant Thornton’s latest CFO survey, 46% are adjusting supply chains, 42% are conducting high-frequency scenario planning and 39% are investing in cost-saving technologies.

"Fast actions may differentiate winners from losers," said Grant Thornton CFO Advisory National Managing Principal Paul Melville.

Key survey findings reveal:

• Supply chain shifts: 46% of finance leaders are adjusting supply chains to reduce tariff exposure.
• Scenario planning: 42% are conducting high-frequency, proactive scenario planning.
• Technology investment: Digital modernization and cybersecurity are the top areas for increased investment.
• Pricing strategies: 35% are raising prices to offset rising costs.
• Customer focus: 51% are prioritizing customer acquisition and retention, up from 38% in Q1.

To strengthen resilience in a changing environment, finance leaders should consider the following actions:

• Tighten cost controls: Manage expenses with a constant eye on ROI.
• Expand scenario planning: Prepare for multiple outcomes, including asset acquisitions and divestitures and reshoring production.
• Reevaluate supply chains: Explore domestic sourcing and alternative vendors to mitigate tariff risks.
• Implement technology: Invest in digital transformation and consider high-ROI AI initiatives.
• Refine pricing models: Consider dynamic pricing and passing tariff costs on to customers.
• Plan for tax reform: Model potential impacts of upcoming legislation on deductions, depreciation and international operations.
• Boost customer engagement: Increase sales and marketing spend, using personalization to drive loyalty and growth.

Melville said that while finance leaders welcome a respite from tariffs, the continuing uncertainty leaves CFOs in a precarious position with their business strategy. 

“CFOs are relieved that, for example, tariffs on imports from China aren’t 145%, but they certainly can’t put their feet up and relax, as entering an era of unreliability, fast actions may differentiate winners from losers,” Melville said. “Whether it’s a 90-day tariff reprieve or court rulings and appeals, the unpredictability of the economic environment doesn’t help finance leaders with long-term planning.

Mike Notarangelo, Private Equity Audit Leader for Grant Thornton, said IPO aspirations remain, but timelines have extended. 

“The IPO outlook entering 2025 was at its best in several years, but has tempered in recent months,” he said. “Macro uncertainties and market volatility have, at the very least, pushed IPO timelines to the latter half of the year, perhaps into the first half of 2026. Organizations that were sprinting toward a listing in the first half of 2025 have not necessarily abandoned their plans, but are moving at a more measured pace, staying ready in case an opportunistic window to list presents itself.” 

In the survey:

Finance leaders’ pessimism over the U.S. economy spiked to 46%. The previous high for pessimism over 15 quarters was 38%.
The portion of finance leaders who expressed confidence in their business’ ability to meet supply chain needs (37%), cost control objectives (37%) and growth goals (41%) all registered their lowest marks in 15 quarters.

Profit growth expectations plummeted. Just 61% of respondents expect profits to rise in the next 12 months, compared with 78% who said the same in Q1.

There’s no single strategy that a majority of respondents have pursued — the top answer was adjusting supply chains to reduce tariffs’ impact, which 46% said they were undertaking. But many finance leaders have made multiple adjustments:

• 42% are conducting high-frequency proactive scenario planning
• 39% are implementing technology to reduce costs
• 35% raised prices

Preparing for shifting tax requirements 
 
As Congress works to develop new tax legislation, finance leaders are split fairly evenly in their assessment of the potential effects on their companies — even though the legislation is designed to be business-friendly. While 42% expect the changes to be beneficial, 33% said tax changes would harm their businesses’ financial position. 

The survey was in the field during the early stages of tax bill discussions. Grant Thornton Washington National Tax Office Leader and International Tax Solutions National Managing Principal David Sites said CFOs might be more optimistic about the legislation if polled today. But he added that some businesses might suffer negative consequences from possible limits on state and local tax business deductions for pass-throughs, as well as the potential elimination of clean energy credits.

Business leaders and legislators also are concerned about the effects of the ballooning U.S. debt on the economy. 

“Our interest expense has grown to be one of the highest government expenditures,” Sites said. “Anybody who has run a household budget knows that if the interest on your debt is one of your largest expenditures, your financial picture is not very healthy.” 

As the legislation is developed in the coming months, Sites recommends that business leaders evaluate the timing of any expenditures that will be affected by changes in rates or tax treatments. Issues to consider include:

• Interest expense limitations
• Research and development costs
• Bonus depreciation
• Clean energy projects
• Foreign-derived intangible income
• Section 899 unfair tax practices provisions
• Base erosion anti-abuse tax rules

International tax issues should receive special scrutiny. 

“There may be some onerous tax consequences for foreign companies investing in the United States,” Sites said. 

Grant Thornton National Tax Solutions Leader Dana Lance noted that companies will have to carefully weigh the competing effects of potential scenarios as they determine a path forward. “Until we have certainty on the treatment of key items such as the research and capital expenditures, companies will need to weigh their investment decisions carefully,” Lance said. 

She added, “The competing pressures of a desire to create incentives for investment in U.S. business operations with the need to raise revenues will certainly be a key element of the ongoing legislative debate — especially if the government's tariff revenue is uncertain.”

Industry-specific considerations 

Finance leaders have pursued different tariff mitigation strategies depending on their industry. Grant Thornton is observing impacts across all industries. Some effects are related directly to tariffs, while others stem from the broader economic consequences of those tariffs. Our data shows the following trends:

Banking: Executives are more likely to be conducting proactive scenario planning. One key tariff-related concern in the banking and financial services industries is the slowing of M&A deal flow — which may be temporary but has a ripple effect across the industries.

Manufacturing and retail: Respondents in these sectors have adjusted their supply chains to reduce the  impact of tariffs. In manufacturing, where price volatility is most difficult to manage, some companies are renegotiating existing contracts at renewal to deal with rising cost pressure.

Technology and telecommunications: Finance leaders are focused on implementing tech, automation and AI to reduce costs. But some of their clients may be scaling back discretionary spending due to economic uncertainty — a shift that could put a dent in tech clients’ revenue.