Share Biggest Challenges Facing American Companies

PNC recently sponsored a survey of 300 U.S. CFOs* to understand their expectations about Federal Reserve interest rates through the end of 2024, as well as their intended actions and business implications if rates are cut.

• Almost half of U.S. CFOs don’t expect the Federal Reserve to cut interest rates this year.
• CFOs share that the biggest challenges for American companies today revolve around employees (31%), change and uncertainty (25%) and issues surrounding technology (19%).

Inside the Minds of CFOs Topline National Findings

• Almost half of U.S. CFOs don’t expect the Federal Reserve to cut interest rates this year, running counter to predictions by the market and Federal Reserve officials themselves.
• Almost a third of the CFOs go a step further, predicting interest rates will actually rise this year, despite a slowdown in inflation, weakness in the job market and a slide in homebuying in recent months.
• 86% of CFOs say a rate cut would improve their company’s financial performance.
  • Those based in Texas, the Midwest and the West were more likely to have agreed vs those in the Northeast.
• 91% of CFOs say a rate cut will have a positive impact on their company, specifically related to investments, higher demand/increased consumer spending power, and long-term planning.
  • Having a positive impact is more prevalent among respondents from Texas and the West vs those in the Northeast, and among those with loans or bonds maturing in the next year.
• 80% Public company CFOs say a rate cut would increase their share price.
• CFOs who say that after a rate cut their company would increase:
  • Technology Spending 75%
  • Capital Expenditures 73%
  • Hiring 70%
  • Bank Borrowing 69%
  • Introducing New Products/Services 68%
  • Refinancing Debt 68%
  • R&D Spending 67%
  • Employee Compensation/Benefits 65%
  • Expansion to New Markets 65%

• Over the past 12 months, surveyed CFOs have invested in the following technologies:
  • Cybersecurity/Fraud Protection 71%
  • Cloud Computing 65%
  • Automation 57%
  • Artificial Intelligence/Machine Learning 52%
  • Hardware and Infrastructure 45%
• Surveyed CFOs expect their company’s office square footage will change in the next 12 months.
  • Increase 65%
  • No Change 33%
  • Decrease 3%
• 44% of Public company CFOs surveyed say it is extremely or very likely their companies will be taken private in the 12 months after a rate cut.
• 19% of Private company CFOs surveyed say it is extremely or very likely their companies will pursue an IPO in the 12 months after a rate cut.
• CFOs share that the biggest challenges for American companies today revolve around employees (31%), change and uncertainty (25%) and issues surrounding technology (19%). 

*The study was administered by Bloomberg Media’s data science team and included CFOs, ages 26+, employed full time as a CFO in any industry except market research, advertising/marketing/PR, media/publishing/broadcasting, non-profit/social action and/or politics lobbying, in a company headquartered in the US, with a turnover of $5 million or more. The study was conducted between June 10, 2024, and June 21, 2024.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.