Over a third (36%) of Europe’s CFOs feel more pessimistic about their companies’ financial prospects than they did three months ago, according to the tenth edition of the Deloitte European CFO Survey. This percentage has doubled since the first survey in spring 2015, when the figure stood at 18%.
Fewer than one in five CFOs (18%) consider now to be a good time to take on risk, the lowest percentage on record. This overtakes last edition’s record low of 20%.
It is most noticeable in countries inside the euro area where just 16% are keen to take on risk at present. Industries more heavily reliant on global trade – including those in the automotive, industrial and transport sectors – show the least risk appetite.
The fall in risk appetite correlates with the continual increase in perceived financial and economic uncertainty. Almost seven out of ten CFOs (69%) now rate the current level of uncertainty as high or very high.