Corporate Leaders Reported Diminished Economic Optimism

Financial officers see higher costs ahead as smaller firms struggle with investment constraints.

Updated on Sept. 23, 2026 in Economic Indicators

Bold flat-color editorial illustration of stacked industrial shipping containers, representing systemic financial constraints in the current economic climate. — Corporate financial officers reported a decline in economic optimism this quarter, citing rising costs and restricted investment capacity for smaller firms. AI Illustration. Upload story photo >

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Do you believe the U.S. economy is getting better for businesses in your area?

The latest Duke University and Federal Reserve survey shows U.S. economic optimism among CFOs dipped to 60.3 in the third quarter. This reading follows a score of 60.6 in the second quarter and 61.7 earlier this year.

Why it matters

As businesses prepare for expected price growth of 5.3% this year, these sentiment shifts signal tightening operational budgets. Smaller companies are feeling the pressure more acutely, with 20% reporting financial constraints that limit their ability to invest in growth.

CFOs surveyed expect price growth of 5.3% and unit cost growth of 4.8% for the year. Among the 517 participants, smaller firms face higher barriers to investment than their larger counterparts.

The players

Duke University

A research institution that partners with the Federal Reserve to track executive sentiment.

Federal Reserve

The nation's central bank that provides monetary policy and tracks economic indicators.

The details

Corporate leaders balance company-specific prospects, which averaged a score of 69.7, against a broader, cooling view of the national economy. When CFOs expect rising unit and consumer prices, they often shift toward defensive capital allocation. Smaller firms, in particular, appear to have less flexibility, as nearly double the share of small businesses report financial constraints compared to larger enterprises.

Q1 2026: Economic optimism score was 61.7.
Q2 2026: Economic optimism score was 60.6.
August 17 to September 4, 2026: 517 CFOs provided survey responses.
Q3 2026: Economic optimism score was 60.3.

Money Landscape

The current economic sentiment scores continue a gradual downward trend from the first quarter 2026 economic optimism reading of 61.7. This cooling reflects a period of heightened sensitivity to cost growth and operational constraints for many U.S. firms.

The survey underscores an environment where businesses expect input costs to rise by 4.8%, which often leads to higher prices for consumer goods. Households should review their budget for essential categories prone to inflation as companies adjust their pricing strategies.

The takeaway

CFO sentiment suggests that businesses remain cautious while preparing for ongoing cost pressures throughout the year. Review your own household budget for potential price increases in goods and services as firms attempt to manage rising unit costs.