Positive feelings among CFOs

Tuesday 09 January 2024

A survey of Chief Financial Officers has suggested there is "optimism well above average levels" at the start of the new year.

The poll was run by Deloitte, and Audit & Assurance Partner in Guernsey, David Becker said: "it’s good to see that despite poor economic news over the past months, sentiment from UK CFOs is improving, with optimism well above average levels. It will be interesting to see if this leads to greater activity in the investment management sector and investment more broadly."

Conducted between 28 November and 12 December 2023, a total of 72 CFOs participated in this quarter’s survey, including the CFOs of 12 FTSE 100 and 26 FTSE 250 companies.

The survey shows that corporate risk appetite has risen to an 18-month high but remains subdued relative to its long-term average while 63% of CFOs anticipate higher investment in new technology and most believe geopolitical factors pose the greatest external risk to their own businesses over the next 12 months.

Finance leaders also expect price and wage pressures to soften over the next two years. They see the Bank of England’s base rate falling from its current level of 5.25% to 4.75% in a year’s time.

The survey also suggested that many CFOs again see geopolitical factors as the greatest external risk to their own businesses over the next 12 months, along with increased anxiety about productivity and competitiveness in the UK economy.

Higher energy prices, or disruption to supply, is seen as the third biggest risk.

Read the latest and previous survey results in full HERE.