Uncertainty dents CFOs’ confidence

ECONOMIC and political uncertainty sparked a dip in optimism among UK company finance chiefs in the first quarter of 2010, a survey said today

The Deloitte CFO survey reveals that CFOs remain cautious about the recovery with 82% expecting a sluggish, but sustained improvement.

But one in three believe there is chance of the economy suffering a double dip in this cycle.

The majority of CFOs polled believe that a hung parliament would have a negative impact on their business and for the economy. 93% think it would be bad news for the economy, with 37% believing it would have a significant impact.

There is a clear consensus among CFOs as to the next government’s key priority. 85% say that reducing the public sector deficit should be the top economic priority.

Richard Bell, partner and head of transaction services for the UK regions at Deloitte said:: “What emerges from these findings is that financing conditions for larger companies are slowly improving.

“However, that still leaves corporates with plenty to worry about in terms of the pace of the recovery and the election.

“CFO sentiment appears to be consistent with the current general mood of uncertainty about the pace of UK recovery and speculation that the General Election may deliver a hung parliament.”