CFO confidence crashes

Steve Dinneen
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MORE than a third of chief financial officers expect a double dip recession as confidence crashes to its lowest level in 18 months.

As a result, finance bosses are maintaining a strong focus on keeping costs down and three quarters warn against taking risks, according to a Deloitte survey.

However, larger companies are no longer suffering from the credit famine, with banks much more open to lending and the cost of borrowing back to pre-recession levels.

Despite the gloomy outlook, 59 per cent see revenues rising over the next 12 months, and most see profits margins improving too. An overwhelming 82 per cent see M&A activity continuing to pick up over the next year.

Deloitte partner Margaret Ewing said: “UK corporates entered 2010 with a cautious view on the sustainability of the recovery and have stuck to this view.”