CFO confidence levels plummet on Brexit news
CFOs are experiencing record levels of uncertainty and a decreased appetite for risk following the shock announcement of Brexit, research from Deloitte has revealed.
According to the Big 4 firm’s latest CFO survey, 95 per cent of CFOs say their businesses are experiencing higher than normal, high or very high levels of uncertainty during the second quarter of 2016. This figure represents a sharp increase from levels during the first quarter of the years, which stood at 83 per cent.
Chief economist at Deloitte, Ian Stewart, said: “Perceptions of uncertainty have soared to levels last associated with the euro crisis five years ago. The spike in uncertainty has had a toxic effect on business sentiment with optimism dropping to the lowest level since our survey started in 2007, lower, even, than in the wake of the failure of Lehman in late 2008.”
Appetite for risk has also been markedly affected by the referendum result, with only 8 per cent of CFOs believing now is a good time to take risk onto their balance sheet, down from 25 per cent in the previous quarter and its lowest level since the beginning of 2009.