Nearly four out of 10 CFOs are scaling back hiring while automating tasks with new software, equipment and other technology, the Federal Reserve Banks of Richmond and Atlanta said in the description of a quarterly survey.
The findings align with recent signs of a cooling in the labor market. Average hourly earnings in February increased only 0.1% compared with a 0.5% monthly gain in January.
CFOs have also upgraded their forecasts for economic growth during the next 12 months to 2.2% from 1.7% during the fourth quarter survey, with optimism rising among firms of all sizes and industries. Read more.