In August 2023, Chief Financial Officers (CFOs) across North America signaled a strategic pivot toward more conservative financial planning, according to Deloitte’s fourth-quarter CFO Signals Survey. Faced with ongoing inflationary pressures, interest rate volatility, and geopolitical instability, finance leaders have recalibrated their priorities to emphasize resilience, operational efficiency, and risk mitigation.
The survey results illustrate a broader sentiment of caution among executives, even as opportunities for growth—particularly in mergers and acquisitions—remain on the horizon.
A Landscape Defined by Economic Headwinds
Economic volatility continued to define the business environment throughout 2023. Despite the Federal Reserve’s efforts to tame inflation through interest rate hikes, cost pressures remained elevated, and consumer confidence wavered amid concerns about a potential slowdown. These macroeconomic variables have led many CFOs to tighten budgets, reassess investment timelines, and defer nonessential capital expenditures.
Deloitte’s survey highlighted that more than half of CFOs rated the current North American economy as “bad”, though their outlook for the next 12 months remained cautiously optimistic. CFOs are balancing between managing immediate risks and preparing their organizations to pivot when conditions improve.
Deal Activity Still on the Table
Despite heightened caution, there is still an appetite for strategic acquisitions. Approximately 34% of CFOs surveyed expect deal activity to increase over the coming quarters, while 37% identified mergers and acquisitions (M&A) as a key growth lever. This suggests that while internal cost management is a priority, opportunistic expansion—especially in distressed or undervalued assets—remains a viable pathway to long-term value creation.
These findings reflect a bifurcated approach where companies are simultaneously tightening internal controls and scanning the market for strategic opportunities. Sectors such as technology, healthcare, and energy are expected to lead M&A activity, driven by shifts in consumer demand and digital innovation.
Focus on Automation and Digital Transformation
A standout insight from the August 2023 survey is the strong push toward automation and digital transformation. A striking 80% of CFOs reported plans to increase automation in their financial operations, a trend accelerated by the need to streamline processes and reduce costs.
The drive for automation is not limited to back-office functions. CFOs are increasingly turning to predictive analytics, machine learning, and AI-powered tools to enhance forecasting accuracy, improve compliance, and gain deeper insights into financial performance.
Digital transformation also includes a rethinking of talent needs, with companies investing in upskilling initiatives to equip finance teams for more analytical and strategic roles. This transformation is seen as essential for staying agile in an unpredictable economic climate.
Cost Management and Financial Discipline
With margins under pressure, CFOs are doubling down on cost containment. The survey revealed a heightened emphasis on reducing discretionary spending, improving procurement efficiencies, and restructuring debt to maintain liquidity.
At the same time, finance leaders are focused on scenario planning and stress testing—tools that have become indispensable in an era marked by supply chain disruptions, shifting regulatory environments, and geopolitical flashpoints.
Outlook: Strategic Caution with Eyes on Innovation
The tone of the August 2023 CFO landscape is best described as measured pragmatism. While challenges remain formidable, finance executives are not retreating—they are recalibrating. The dual priorities of financial discipline and strategic readiness are shaping how organizations plan for 2024 and beyond.
As Deloitte notes, this cautious but deliberate approach reflects a recognition that adaptability, not overextension, will be the defining trait of successful leadership in uncertain times.
