Chief financial officers surveyed by Deloitte said the economy will slow in 2020, though few expect a recession.

Expectations for a U.S. downturn have risen since earlier this year, with 97% of CFOs saying that a downturn (a slowdown or a recession) has already begun or will occur by the end of 2020 — up from 88% in 1Q19. 

Overall, 12% of CFOs say they believe a downturn has already begun, and 14% say they already see signs of a downturn in their company's operations.

Stock market averages are overvalued, according to 77% of respondents, the survey said.

The survey showed that while the corporate leaders see the economy as “good,” they anticipate that before the year is over, conditions will slow, CNBC explained.

They see consumer and business spending slowing, and 82% anticipate taking more defensive actions, like reducing discretionary spending and headcount, as a way to stave off the looming headwinds.

Key takeaways

• CFOs' views on the trajectory of the North American economy improved somewhat; views on Europe and China remain poor.
• Contrary to a year ago, CFOs expect very low interest rates and 10-year bond yields; they again expect a strong U.S. dollar.
• Revenue and capex expectations sit at or near three-year lows; hiring and earnings are among their lowest levels in the last nine years.
• CFOs cite substantial pressure to act on climate change; mostly from their employees, customers, and boards. More than 90% of CFOs say their company has taken at least one action in response to climate change, with the average CFO reporting nearly four.
• Consumer and business spending expectations have fallen; CFOs are less likely to expect higher industry revenue and prices.

• Yardeni Predicts No Recession, Steady Economy, Low Inflation
• World Bank Trims 2020 Growth Forecast Amid Slow Recovery for Trade, Investment