This has been the top risk for three quarters, but domestic concerns have eased with regards to productivity and competitiveness linked to energy supply and labour shortages. 

The cyber-attack concerns was followed by falling demand in the economy and higher energy costs. 

Ian Stewart, chief economist, said optimism is now running at above average levels. 

“Uncertainties driven by Brexit, the pandemic and inflation that have clouded the business scene for much of the last eight years seem to be clearing. For the first time in three years, CFOs expect margins to increase over the next 12 months,” he said. 

“While CFOs are more optimistic about the general outlook, and uncertainty has decreased, that does not apply to geopolitics. The overwhelming majority of CFOs expect geopolitical risk to increase or stay the same in the next three years. On this front at least, CFOs are anticipating further uncertainty.” 

The view is that interest rates will soon be loosened as much as 1% within the next year, with many saying greater risk will be taken but increasing cashflow is still a high priority. 

“CFOs remain focused on controlling costs and building up cash. For now, expansionary strategies, such as capital spending and bringing in new products or services, are on the back burner. Given the challenges of recent years it is perhaps unsurprising that, for all the good news, a degree of caution persists,” Mr Stewart said.