CFO Slice

Chief financial officers face an increasingly complex economic environment, with Moody’s Analytics Senior Economist Emily Mandel advising finance leaders to focus on the issues most relevant to their businesses rather than broad economic signals. She identified the conflict involving Iran and disruption in the Strait of Hormuz as a key near-term risk, warning that prolonged shipping disruptions could keep energy prices elevated and increase supply chain pressures. Mandel also highlighted the growing divide in consumer spending, noting that higher-income households face potential pressure from weaker investment markets, while lower-income consumers continue to struggle with higher living costs and depleted savings, limiting discretionary spending. Despite the uncertainty, recent surveys show CFOs remain optimistic about their own companies’ prospects, with many believing they can manage risks through internal decisions and strategic planning, even as the broader economic outlook remains uncertain.