UK CFOs see Brexit and geopolitics as posing the two greatest risks to their businesses
- Published: Tuesday, 09 July 2019 07:31
More than eight in ten CFOs (83 percent) say they expect the long-term business environment to deteriorate as a result of the UK leaving the EU, according to Deloitte’s latest Q2 CFO Survey. This is the highest reading since the referendum in June 2016.
Brexit remains the largest risk UK business face, rated at 65 (on a scale of 0 to 100) compared to 62 in the previous quarter. However, rising geopolitical risks are now the second largest concern for business, increasing to 60 from 55 last quarter.
The risk of greater protectionism in the US is also rated at 60, up from 49 in Q1.
Corporates remain focused on defensive strategies with 52 percent citing cost control as a strong priority.
Richard Houston, senior partner and chief executive of Deloitte North and South Europe, concludes: “The continued challenging and uncertain macro-economic environment is weighing on the corporate sector and its job creation and investment plans. Companies are looking for more certainty around our country’s economic future, as they prepare themselves for a post-Brexit environment.”