Gavin Hinks, Accountancy Age, Tuesday 6 July 2010 at 08:58:00

Survey rereals falling confidence among CFOs


Pessimism is growing among CFOs over the short-term prospects of the UKeconomy, according to a survey which shows CFOs believe another descent intorecession is on the cards.

Thepoll, carried out by Deloitte, revealed that CFOs now see a 38% chance of adouble dip, up from 33% in the first quarter of this year. Deloitte said theresults demonstrated the lowest level of confidence among CFOs in the past 12months.

Other results showed that two thirds of CFOs expect the tighter fiscal policyof the new Lib-Con coalition to have a negative short-term effect.

Ian Stewart, Deloitte chief economist, said: "The latest CFO Survey paints apicture of concern about growth coupled with improvements in the corporatecredit and liquidity environment. Examining how CFOs plan to run theircompanies? finances enables us to see how corporates plan, in practice, toreconcile these pressures.

"Cost control remains the top priority for UK CFOs, as it has been for thelast two years. With fears of a double dip increasing, CFOs are maintaining astrong focus on costs. "

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