UK CFOs Turn More Optimistic as Country Eases Lockdown Measures
Leading businesses across Britain are turning more hopeful of generating higher profits in the coming months once the economy reopens and Brexit uncertainties diminish. A survey of big companies’ CFOs in Britain reveals that businesses are looking forward to raising hiring and investment activity.
Nearly 10% of CFOs saw Brexit drive significant to severe disruptions to their business but 3% anticipate the disruptions to ease down within a year. Meanwhile, the work from home situation is likely to ease with employees expected to return to offices between July and September, bringing back some more normalcy in the way organizations function.
While the risks from the coronavirus pandemic and Brexit have reduced in the latest edition of the survey, CFOs highlighted inflation and asset price bubbles as emerging macroeconomic risks to their businesses going forward. After contracting by almost 10% through the past year, economists expect the British economy to resume recovery soon, supported by a strong COVID-19 vaccine rollout program and the easing of lockdowns and restrictions.
Chief economist at Deloitte, Ian Stewart, observes, “Brexit has been a significant dampener on business activity in the last four years but with the UK’s final departure from the EU, such effects are fading. Combined with a successful vaccine rollout and a greatly improved global backdrop, we are seeing a turbo-charged surge in business optimism.”
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