U.S. CFOs’ Optimism Grows Amid Economic Gains, AI Boost
U.S. corporate finance leaders are growing more optimistic about the economy and their businesses, according to the latest U.S. Bank CFO Insights Report. The survey, conducted in August 2026 among 1,000 senior finance leaders, reveals a shift in priorities toward growth and dealmaking, despite ongoing risks. This optimism is reflected in both sentiment and strategic actions, with companies increasingly willing to act rather than let uncertainty delay decisions.
Optimism rises as economic outlook improves
The report shows 68% of finance leaders now have a positive three-year outlook on the U.S. economy, up from 58% in the spring. Their confidence in their own companies’ financial prospects is even higher, with 71% feeling optimistic, compared to 64% previously. In addition, the shorter-term outlook has improved, with 41% reporting a positive 12-month outlook on the U.S. economy, up from 36% earlier this year. Notably, half of finance leaders report a positive 12-month outlook for their own businesses, up from 45%, highlighting a persistent gap between confidence in their companies and the broader economy.
This increased optimism is evident in their changing priorities. While cost-cutting remains the top concern at 37%, revenue growth has nearly caught up at 35%. Exploring M&A opportunities has also climbed into the top three priorities, up from fifth place earlier this year. This shift shows a growing willingness to pursue growth despite lingering economic uncertainties.
AI investment drives opportunity and cost challenges
AI plays a significant role in this optimism. 69% of finance leaders believe economy-wide AI investment is creating meaningful commercial opportunities for their businesses. However, 51% report their spending on AI tools has exceeded budgets over the past year, highlighting the dual nature of AI as both an opportunity and a financial challenge. The adoption of agentic AI in finance operations, particularly in cash forecasting and fraud prevention, varies widely by company size, ranging from 23% at smaller firms ($100 million to $249.99 million in revenue) to 74% at larger companies (above $5 billion in revenue).
M&A activity heats up, led by manufacturing
The manufacturing sector is a standout in M&A activity. 78% of manufacturing finance leaders expect industry dealmaking to rise, well above the national average of 59%. 66% say their firms are more likely to acquire, compared to 57% nationally. This enthusiasm contrasts with the broader trend, where only 59% of finance leaders across all sectors anticipate increased M&A activity.
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This shift toward growth and dealmaking varies across industries. While technology, consumer, and retail sectors prioritize growth, manufacturing and utilities remain focused on cost-cutting. In manufacturing, for example, 60% cite cost-cutting as a top priority, nearly double the 34% prioritizing revenue growth. This divergence reflects differing strategic responses to industry-specific challenges and opportunities.
Risks persist, but productivity investments take precedence
Despite their optimism, finance leaders acknowledge significant risks. Geopolitical tensions are the top concern at 38%, followed by high borrowing costs (35%) and inflation (34%). Notably, 71% view geopolitical uncertainty as both a risk and an opportunity, up from 61% earlier this year. This dual perspective reflects a subtle understanding of how global events can create both challenges and strategic advantages.
In managing inflation, finance leaders prefer investing in productivity through AI and automation (72%) over reducing headcount (28%). This strategic shift emphasizes long-term growth over short-term cost-cutting. Additionally, 54% of companies remain underhedged against commodity price risks, highlighting a vulnerability in their financial strategies that could impact their ability to handle volatile markets.
The gap between confidence in individual businesses and the broader economy is most pronounced in the oil and gas sector, where only 30% of finance leaders are positive about the economy, compared to 60% who are optimistic about their own companies. This disparity shows the sector-specific challenges and opportunities that shape financial leaders’ perspectives.
