The majority of corporate finance bosses expect the UK economy to recover in 2010, but that a full recovery will not be achieved for years to come. The cautiously optimistic results come from Deloitte’s second quarter survey of UK CFOs.
The bottom line is that, “There is no expectation of a return to ‘business as usual.'”
Some of the survey highlights:
- Though overall economic conditions have improved, CFOs expect the difficult financial climate to persist well into the recovery.
- Eigty-five per cent of CFOs think UK unemployment will continue to rise though the first year of the recovery, if not longer.
- Credit conditions have returned to levels before the September collapse of Lehman, but CFOs expect tight lending terms to persist.
- 80 per cent of CFOs forsee deleveraging to continue throughout the recovery.
- CFOs “increasingly” look to “equity and bond markets for finance,” rather than bank borrowing.
- Despite the economic climate, the CFOs optimism on mergers and acquisisions is at its highest level since the initial Deloitte survey in September 2007 – a sentiment, Deloitte notes, “that fits with an improved economic outlook and still-depressed asset valuations.”
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