Big4.com reports on Deloitte CFO survey where fears of recession and euro break-up ease

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Deliotte Survey on UK’s largest companies reveal that while business confidence has improved significantly, CFOs still cautious.

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Big4.com, is the premier social networking forum for professionals and alumni of Accenture, Andersen, BearingPoint, Capgemini, Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers, PwC is reporting on a new Q1 Deloitte CFO Survey highlighting the views of CFOs from major companies that includes both an optimistic and cautious approach.

Big4.com reports on the fact that although confidence is up among these CFOs, they remain cautious and these executives are striving to maintain higher cash balances than before the recession. This means that even though business confidence is higher now than in Q1 2011, raising capital spending, undertaking M&A or introducing new products has not risen on a parallel. Defensive strategies, including boosting cash flow and reducing costs are the focus instead.

Ian Stewart, Deloitte chief economist, comments on the entire situation.

“The worries about the risk of recession and a break-up of the single currency that dominated corporate thinking at the end of last year have eased. Stronger financial conditions, reflected in rising global equity markets, are seen to be benefiting larger UK companies, with CFOs reporting an increase in credit availability,” he said. “Perhaps surprisingly though, the balance sheet strategies of large companies remain cautious. Rising levels of optimism have not yet led major UK corporates to adopt significantly more expansionary policies.”

The Deloitte survey looked at CFOs from 136 major companies, including 39 FTSE 100 and 53 FTSE 250 businesses. Big4.com reports the proportion of finance chiefs who expect a double dip recession has fallen to 30%, down from 54% in December. The number of CFOs expecting one or more members of the single currency to leave the euro this year has dropped to 26%, from 37% last quarter.

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Kristy Short
Big4.com
(734) 481-0186
kristy(at)sascommunications360(dot)com

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Big4.com
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