Most CFOs believe credit crunch will worsen

The latest Deloitte survey of finance directors show more seven out of 10 UK chief financial officers believe the credit will get worse.

An overwhelming majority of 83% said credit was now hard to obtain, up from 63% in March and 48% in September last year.

‘The squeeze on liquidity is increasingly transmitting itself to the corporate sector through a reduced supply and rising cost of credit,’ Margaret Ewing, Deloitte partner and vice chairman, said.

Finance directors are also less confident about the outlook for corporate earnings and 56% believe corporate earnings will grow more slowly than the average 5% rate expected by City analysts, the report said.