This month, Deloitte published their quarterly survey of CFOs. Their survey is widely accepted within the finance industry as an informed source of the sentiments and strategies of UK corporates. The survey assesses attitudes to valuations, risk and financing.
The key finding in the latest survey is that optimism among CFOs has reached a record high. This is attributed to the successful roll-out of the vaccination programme in the UK, and the prospect of some sense of normality returning in the not too distant future in the workplace. On top of this, the survey also reports that CFOs are expecting a strong recovery in profits over the coming financial year as they move away from defensive strategies towards more proactive strategies.
In terms of Brexit, 10% of the CFOs surveyed say that they have experienced significant or severe disruption within their business as a result of Brexit, but believe that now this disruption will start to fade with only 3% expecting such disruption in a year's time.
And in terms of returning to work, two-thirds of the CFOs surveyed are expecting the majority of their workforce to be back in the office by September this year.
Ian Stewart, chief economist at Deloitte comments: "Brexit has been a significant dampener on business activity in the last four years but with the UK's final departure from the EU, such effects are fading. Combined with a successful vaccine rollout and a greatly improved global backdrop we are seeing a turbo-charged surge in business optimism. Having come through the deepest downturn in 300 years UK businesses are firmly focussed on growth. Pent-up business and consumer demand are set to power a strong profits recovery, one already anticipated by the surge in equity markets since February."
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