Studies reveal drastic decline of confidence in US entrepreneurs due to uncertain policies

SACRAMENTO, July 9: Confidence among US business leaders has significantly declined in recent weeks as rising uncertainty over trade policies affects both large corporations and small businesses, according to two surveys released yesterday.
A quarterly survey conducted by Deloitte between June 4 and June 18 revealed that finance chiefs across North America sharply downgraded their outlooks amid growing concerns over the economy and geopolitical tensions.
The survey, which included 200 chief financial officers (CFOs) at companies with at least $1 billion in annual revenue, found that the overall CFO confidence score dropped to 5.4 in the second quarter, down from 6.4 in the first quarter.
Only 23% of CFOs rated the North American economy as “good now,” a significant decrease from 50% in the previous quarter.
Growth expectations also declined across all major operational metrics, with projections for revenue, earnings, and capital investments all revised downward.
The report indicated that CFOs have become notably more risk-averse. Only one-third of respondents now consider it a good time to take on more risky endeavours, making this the lowest figure since the third quarter of 2024, representing a sharp decline from 60% in the first quarter.
Finance chiefs cited the economy as the top external risk, followed by concerns over cybersecurity and interest rates.
According to Steve Gallucci, global and U.S. leader of Deloitte’s CFO Program, the broader global uncertainty is the primary driver behind the decline in optimism, with tariffs being one contributing factor.
Experts pointed to the sweeping tariffs imposed by the Trump administration in April as a key source of uncertainty for businesses.
Many companies are now adopting a “wait-and-see” approach, delaying decisions on investments and hiring, even as financial markets seem to overlook the fluctuating signals from the White House.
Small businesses are also feeling the strain. The National Federation of Independent Business (NFIB) reported yesterday that its Small Business Optimism Index dropped by 0.2 points to 98.6 in June.
Although the survey’s Uncertainty Index fell by five points to 89, it remains high, with politics dominating the news cycle, according to the report. A significant factor contributing to the decline was a sharp rise in the number of businesses reporting excess inventory.
Nearly one in eight small firms said their inventories were “too high” in June — nearly double the figure from May. “Sentiment is in the tank, consumers are sharply divided on their political affiliation,” the NFIB report said.
“Democrats are depressed, Republicans jubilant. Just how this will shape their spending is less clear. As uncertainty is resolved, the outlook will become clearer.”
(UNI)

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