US company CFOs saw a solid economic outlook, at least until war broke out, Fed survey shows

WASHINGTON, March 25 (Reuters) - U.S. firm concern chiefs' outlook for the system improved implicit the archetypal months of the year, astatine slightest until the ‌outbreak of the U.S.-Israeli warfare connected Iran, with executives expecting to summation ‌employment amid coagulated gross growth, though with continued unit arsenic good to rise prices, according to a ​Federal Reserve survey.

Tariffs and commercialized argumentation remained the apical interest among the 473 main fiscal officers polled successful a quarterly survey conducted by the Federal Reserve banks of Atlanta and Richmond with the Duke University Fuqua School of Business.

But the stock of CFOs citing ‌those things arsenic their biggest ⁠concern continued to easiness to conscionable implicit 20% versus astir 40% successful mid-2025, erstwhile the Trump medication was pursuing melodramatic increases successful ⁠import taxes, galore of which person since been reduced oregon ruled illegal. Other apical issues included labour prime and availability, cited by 17% of respondents, and the outlook for ​sales, cited ​by 15% of respondents.

The wide mood, however, ​was affirmative successful a survey that ‌was conducted mostly earlier U.S. and Israeli strikes connected Iran pushed the terms of lipid implicit $100 a tube and disrupted shipping and question successful the Middle East.

Up to that point, "business expectations for some request and hiring successful 2026 held up,” Sonya Ravindranath Waddell, vice president and economist with the Richmond Fed, said successful commentary released with ‌the latest survey. “Most firms expected request to summation ​in the adjacent 12 months and reported continued ​hiring ... Very fewer firms expected declining ​demand oregon a request to laic disconnected workers."

The median of survey ‌respondents saw their firms' gross rising ​5% this year, and ​anticipated boosting employment by 1.6%. Prices were besides expected to emergence 3%, with portion costs rising by the aforesaid amount.

The canvass was conducted from February 17 ​to March 5, with ‌no denotation successful the results of differences successful attitudes among those who ​responded earlier oregon aft the commencement of U.S. airstrikes connected February 28.

(Reporting ​by Howard Schneider; Editing by Chris Reese)