CFOs expect pricing pressures to continue in 2026: Duke-Fed survey

Core Insights - CFOs are entering 2026 with expectations of ongoing pricing pressure and economic uncertainty, as indicated by the latest CFO Survey from Duke University's Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta [1] Pricing Pressure and Growth Expectations - CFOs anticipate a median price increase of 3.5% for products and services in 2026, reflecting elevated cost dynamics influenced by tariffs, input costs, and customer sensitivity [3][4] - The findings suggest that CFOs are preparing for price increases as part of broader margin management strategies, indicating a sustained high price growth outlook [4] Labor Market Insights - The median company expects a 1.7% increase in full-time employment in 2026, with 59% of companies planning to expand their workforce, while 15% plan to reduce headcount and 26% expect no change [5] - Wage growth is projected to average around 3%, indicating ongoing compensation pressure despite a moderation in hiring and falling interest rates [5] Economic Outlook - CFOs expect real GDP growth of 1.9% in 2026, showing stability in their outlook, although the CFO optimism index for the overall economy has slightly declined from 62.9 to 60.2 [6] AI Investment Trends - Investment in AI is expected to grow, particularly among smaller and mid-sized firms, with 78% of large companies having invested in AI in 2025, and nearly 80% of small firms planning to invest in AI in the coming year [7]