Financial Optimism Among CFOs Dips 0.8% in Q1 2025
Mumbai, March 24, 2025: A recent survey of Chief Financial Officers (CFOs) in India, conducted by Dun & Bradstreet India, a leading global provider of business decisioning data and analytics, found that CFOs’ confidence for both industrial and services financial performance has reduced compared to Q4 2024.
The Dun & Bradstreet India Composite CFO Optimism Index analyses the optimism level of CFOs on 12 parameters: operating margin, liquidity position, level of financial risk on company’s balance sheet, risk appetite, need for raising short-term and long-term funds, cost of raising funds, availability of funds, domestic and global macro-economic scenario, overall scenario for mergers and acquisitions, and level of financial risks for businesses.
Overall optimism for financial performance reduced marginally by 0.8% in Q1 2025. Optimism on the financial sub-index for the industrial sector has declined by 7.1% Q-o-Q.
There is a decline in the macro-economic sub-index for the services sector in Q1 2025, due to uncertainty about the global recovery. Optimism in the industrial sector for the global macro-economic scenario declined by 9% Q-o-Q due to uncertainty on the global policy front – specifically on trade.
Overall, businesses are expected to benefit domestically from the anticipated rate-cuts and are therefore delaying their requirements for long-term funds for the moment, indicated by a decline in optimism for the need for long term funds. Optimism for company liquidity positions has reduced in Q1 2025, whilst optimism for the need for short-term funds increased in Q1 2025.
Key findings from the survey:
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The Composite CFO Optimism Index is at 134.3 for Q1 2025
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Overall optimism for financial performance has decreased by 0.8% in Q1 2025
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Optimism for overall macro-economic scenario stands at 168.7 in Q1 2025, increasing by 35.8% on quarterly basis
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Optimism within Industrial sector for financial performance sub-index declined by 7.1% in 2025
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Optimism on the Global macro-economic scenario for the corporate sector reduced by 6% Q-o-Q
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Optimism regarding the risk appetite in the current scenario in the services sector reduced by 38% Q-o-Q
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Optimism for company operating margins has reduced by 8% Q-o-Q
Commenting on the findings of the survey, Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, said, “The Q1 2025 Composite CFO Optimism Index shows a stable yet cautious outlook. While overall financial optimism slightly dropped by 0.8%, shifts across sectors and economic scenarios are evident. Concerns over US trade policies and global protectionism have dampened global macro-economic optimism. The services sector shows reduced risk appetite, and operating margin optimism has decreased by 8% QoQ, reflecting pressure on profitability. In short, while the macro-economic outlook remains positive, CFOs are adopting a more cautious approach to growth and risk management.”
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