Wednesday 10th February, 2016

According to Deloitte’s quarterly Chief Financial Officers (CFO) Survey, CFOs from the UK’s largest companies shows a strong focus on cost control. The survey conducted during Q4 2015 also found levels of support among CFOs for the UK remaining in the EU have narrowed.

137 CFOs from FTSE 350 and other large private companies participated in the CFO Survey.

CFO opinion about the EU in the last 6 months have been towards greater uncertainty and a narrowing of the lead for the ‘Yes’ camp. The ’don’t knows’ and those whose decision will depend on the results of the renegotiation now account for 32% of all CFOs, up from 24% in Q2.

Asked to rate how optimistic they are about the prospects for their company compared to three months ago 30% of CFOs say they are less optimistic, up from 20% in Q2, and just 12% say they are more optimistic, down from 36% six months ago.

Only 37% of CFOs say now is a good time to take on risk, down from 47% in Q3’s Survey and nearly half the level of 72% seen in Q3 2014.

44% of CFOs say cost reduction is a strong priority, up from 34% in Q3 and the first time in 12 months cost reduction has been the top priority.

Ian Stewart, chief economist at Deloitte, said:

"CFOs are most positive about growth in the UK and US in 2016. But despite stronger than expected growth in the euro area in 2015, UK CFOs remain pessimistic about prospects for the region. Levels of confidence about growth in the euro area are lower than for emerging market economies."