CFO optimism falls
29% probability of a double dip recession compared to 27% three months ago, finds Deloitte's CFO survey
CFOs’ OPTIMISM in the UK economy has fallen in the last quarter.
Deloitte’s latest survey found that CFOs predicted a 29% probability for a double dip recession, compared to 27% three months’ earlier. While in balance the CFOs are positive, their optimism is at the lowest level in two years.
UK corporates’ potential profits will be reduced 7% due to pressure created through fiscal policy, they predicted.
However, CFOs are pursuing growth strategies and leveraging their balance sheets.
“Reduced optimism among finance chiefs seems to be influenced by external events, such as conflict in the Middle East and the earthquake in Japan, and movements in financial markets,” said Margaret Ewing, Deloitte partner and vice chairman.
“By contrast, high levels of risk appetite seem to reflect longer term judgments and more positive views on corporate balance sheets, the opportunities available to companies and financial conditions.”