Deloitte CFO Survey: Confidence 'triple dips'

The second quarter’s Deloitte CFO Survey sheds new light on how recent economic events, especially in Europe, have influenced the sentiment and strategies of major UK-based corporates.

Here are the key findings:

• CFO confidence has seen the sharpest fall since the survey started in 2007 – its third major decline in five years.
• On average, CFOs attach a 36% probability to one or more members of the single currency leaving the euro by the end of this year.
• CFOs see macroeconomic uncertainty and the outlook for demand as being far greater influences on capital spending than the availability of finance.
• CFOs have reacted to a weaker and more uncertain economic outlook by adopting more defensive strategies. Cost control and boosting cash flow are CFOs’ top balance sheet priorities for the next 12 months.
• Economic uncertainty is hitting corporate activity. CFOs expect hiring and capital spending to decline in the next year.

Read the full report and an executive summary: Confidence triple dips – 2012 Q2 results.