Survey found Brexit damaged business confidence

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20th July 2016 13:58 - Financial Services

Survey found Brexit damaged business confidence: According to a recent survey by Deloitte, business confidence amongst Chief Financial Officers at some of the United Kingdom's largest businesses (including FTSE 350 companies) has been damaged as a result of the UK's vote to leave the European Union.Survey found Brexit damaged business confidence

Following the UK’s decision to leave the European Union, 73 per cent of Chief Financial Officers said that they are less optimistic about their business’ future, a significant increase from the 32 per cent noted in the first quarter of 2016.

The percentage of pessimistic Chief Financial Officers in the latest Deloitte survey was found to be the highest that the survey had ever recorded since its inception in 2007, and even higher than during the Lehman Brothers’ collapse in 2008.

To try and preserve their capital and manage their company’s spending, business bosses will put the brakes on recruitment. Of the Chief Financial Officers, 83 per cent said that they are anticipating a slowdown in recruitment over the next 12 months. This percentage is the highest number recorded and notably higher than the 29 per cent in the first quarter of 2016.

82 per cent were found to expect a decrease in discretionary spending, the highest figures in five years.

Of the Chief Financial Officers, 91 per cent urged the Government to send a strong signal about its aims in its negotiations with the European Union in order to counter the negative impact of the referendum result.

88 per cent of the Chief Financial Officers said that maintaining the solvency and liquidity of the banking system is critical, whereas 25 per cent said that they want the UK Government to continue with the deficit reduction plan.

Approximately 95 per cent of the Chief Financial Officers said that the level of uncertainty that their company is facing either is more than usual, high or very high, an increase from the first quarter’s 83 per cent.

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