FDs expect stagnant economy for next two years
Baker Tilly poll finds pessimism among finance directors over the state of the economy during the next two years
Finance directors are bracing themselves for rocky market conditions to
continue for the next two years.
98% of FDs now believe that economic growth will stagnate or fall for at
least two years, according to
Finance Director Perceptions survey.
The survey involved 100 private and public companies, from a cross-section of
UK businesses, with a turnover of between £20m and £250m.
Many are planning to reduce their cost base, Baker Tilly found. The main
targets for cost cutting will be employment, renegotiating trade terms, and
cutting investment measures which can be expected to have a wider macroeconomic
impact. In terms of government policy, 66% of businesses surveyed would support
a 1% reduction in employers national insurance.