Concerns over a double dip recession and the impact of government cuts has led economic confidence among chief financial officers (CFOs) to have reached its lowest point in a year, a new report has shown.
Findings from a study by Deloitte, undertaken during the second quarter of 2010, revealed that the balance of CFOs with a positive outlook for the future finances of their firms fell to 24 per cent from the 40 per cent recorded during the previous three-month period.
As many as 38 per cent of CFOs now think a double dip recession is likely, an increase on the 33 per cent who expressed the same view when the survey was conducted in the previous quarter.
Ian Stewart, Deloitte's chief economist, said: “The latest CFO survey paints a picture of concern about growth coupled with improvements in the corporate credit and liquidity environment.
“With fears of a double dip increasing, CFOs are maintaining a strong focus on costs”.
Further findings from the study showed that almost two-thirds of respondents believe that austerity measures in the British coalition government’s budget will have a negative impact on their organisation.
Deloitte quizzed 125 CFOs with approximately a third working for companies within the FTSE 100.
By Jim Ottewill