It isn’t good news: optimism among CFOs of Britain’s largest corporates is at its lowest level since the collapse of Lehman Bros in September 2008.
The latest Deloitte CFO Survey shows that CFOs” financial prospects for their own businesses has fallen for the second consecutive quarter, with 33 per cent expecting a double dip.
The top priorities for CFOs remain the introduction of new products and services, and expanding into new markets. Expanding by acquisition and raising capital expenditure also remain prominent priorities.
The survey also reveals that companies which derive a high proportion of their revenues overseas generally have a higher level of risk appetite and are pursuing more expansionary strategies than their UK-facing counterparts.
A year ago, the dominant view among CFOs was that profit margins were on the rise,” says Ian Stewart, chief economist at Deloitte.
“Today, the balance of opinion is that margins are set to narrow. CFOs believe that the period of strong growth is drawing to an end.