Thursday 18th October, 2018
According to Deloitte’s latest CFO Survey concerns about the effects of Brexit on the UK business environment have increased.
The survey found over the past quarter, optimism and risk appetite have fallen among CFOs and they look more willing to rein in corporate spending over the coming year.
Overall, 13% of CFOs say they are more optimistic about the prospects for their company than they were three months ago, down from 24% in Q2.
31% of CFOs say they expect revenues to rise in the coming 12 months, down from 42% in Q2.
79% of CFOs say they expect the long-term business environment to be worse as a result of leaving the EU, up from 75% in Q2.
CFOs are more negative on the effects of Brexit on their hiring and spending decisions. 50% say hiring will slow over the next three years as a result of Brexit, up from 40% in Q2, and 44% say capital expenditure will slow, up from 34%.
48% of CFOs say that recruitment difficulties or skills shortages experienced by their business over the past quarter have increased, up from 44% in Q2.
Ian Stewart, chief economist at Deloitte, said, “CFOs have become more pessimistic about the long-term effect of the UK’s departure from the EU. 79% expect Brexit to lead to a deterioration in the business environment and only 6% anticipate that Brexit will result in an improvement in the business climate compared with 14% a year ago. Large corporates are pulling in their horns, with just 12% of CFOs saying now is good time to take a risk and 44% expecting their own capital spending to be lower over the next three years.
95 CFOs of FTSE 350 and other large private companies participated in the Q3 2018 CFO Survey, during 14th to 27th September 2018.