Brexit concerns of finance chiefs deepen

A growing number of chief financial officers (CFOS) say they expect the long-term business environment to worsen as a result of the UK leaving the EU, according to a survey out today.

The 81 per cent of those questioned by Deloitte who said they were gloomy about the prospects was the highest level since the EU referendum in 2016.

The survey also shows that pessimism about the shortterm effects of Brexit remains at a high level, with 49 per cent of CFOS expecting to reduce their own capital expenditure and 22 per cent cutting M&A activity as a consequence.

Around half (53 per cent) of CFOS also expect to reduce hiring due to Brexit – the highest level in more than two years.

Cost pressures also appear to have increased, with a record 79 per cent of CFOS expecting operating costs to rise in the next year.

Wages are likely to have impacted this, with official data showing average earnings are growing at close to their fastest pace in 11 years.

However there has been little change in confidence and risk appetite among CFOS.

Ian Stewart, chief economist at Deloitte, said: “CFOS went into March braced for tough times and the latest round of Brexit uncertainties have not materially changed that picture.”

The CFOS of 48 FTSE 100 and FTSE 250 companies took part in the latest survey which was carried out just after the announcement of the first delay in Brexit and covering a period that saw the failure of the House of Commons to agree a new plan. 0 ‘Braced for tough times’ Deloitte’s Ian Stewart