The latest Deloitte survey of UK Chief Financial Officers,
released this morning, highlights the risks and opportunities
facing business in 2016.
The big message is that UK corporates have become much more
cautious. The fourth quarter survey, which took place in the first
half of December, shows CFO confidence dropping to its lowest level
since the euro area was in recession, in mid-2012.
Risk appetite has continued to wane, with just 37% of CFOs
saying now is a good time to take risk onto their balance sheet,
half the level seen at the peak in late 2014.
CFOs are positive about the UK and, especially, the US
economies, but are gloomy about prospects for emerging markets and
the euro area. (I think the pessimism on the euro area is overdone
given that the hard data show a continued, if unspectacular
recovery in the region).
