Wednesday 15th July, 2015

Conducted against a backdrop of an escalating crisis in Greece, Deloitte’s latest survey of Chief Financial Officers (CFOs) shows a rebound in risk appetite and a marked shift to expansion among large UK corporates.

The CFO Survey for Q2 2015, also found a clear majority of CFOs from the UK’s largest businesses support the UK’s continued membership of the European Union. The survey gauges the views of 122 CFOs of FTSE 350 and other large private UK companies.

55% of CFOs say the level of financial and economic uncertainty is above normal, high or very high, down from 63% in Q1 2015. Corporate risk appetite has improved, 59% of CFOs say now is a good time to take risk onto their balance sheets, up from a two year low of 51% in Q1.

The proportion of CFOs focusing on expansion is the highest in four years. 41% of CFOs say introducing new products and services or expanding into new markets is a strong priority for the next 12 months, up from 28% in Q1.

74% of CFOs say it is in the interests of UK business to remain in the EU, while 2% favour the UK leaving.

91% of CFOs say UK export performance has benefited from membership of the EU, 89% say it has attracted foreign direct investment and 78% say the free movement of people is advantageous. However, 57% say the EU legal, regulatory and compliance framework is a burden for UK business.

Ian Stewart, chief economist at Deloitte, said:

“CFOs have shrugged off the effects of the recent sell-off in equity markets and the escalating crisis in Greece. The fears about uncertainty that dampened corporate spirits in the run up to the General Election have also fallen away."