Risk appetite and uncertainty levels remain static
CFOs across Europe remain focused on their company’s growth despite levels of optimism and revenue expectations softening, according to Deloitte’s latest European CFO Survey.
Deloitte has collated the results of surveys run by its member firms in 20 European countries for the spring edition of the European CFO Survey, giving the views of 1,652 CFOs.
Optimism and revenue expectations slow
38 per cent of Europe’s CFOs say they are more optimistic about the prospects for their company than they were three months ago, down from 43 per cent in the Autumn 2017 survey. 12 per cent say they are less optimistic, up from 11 per cent.
63 per cent of CFOs are confident that their firm will increase revenues over the next 12 months, down from 69 per cent six months ago. 71 per cent of CFOs in euro area countries predict revenue growth, compared to 52 per cent in non-euro countries.
Uncertainty levels unchanged
51% of European CFOs say there is a high level of financial and economic uncertainty, down slightly from 52% in Autumn 2017.
CFOs in the UK have the highest reading on perceptions of uncertainty, with 86 per cent while CFOs in Denmark had the lowest with nine per cent. Perceptions of uncertainty are higher in non-euro counties, with 57 per cent reporting high uncertainty, versus 49 per cent in the euro area.
Risk appetite unchanged
34 per cent of European CFOs say now is a good time to take greater risk onto their balance sheets, up from 33 per cent in last autumn’s survey. Just 14 per cent of CFOs in the UK are willing to take on greater risk, the lowest across the 20 countries, compared to 64 per cent in Finland, which remains the highest.
41 per cent of CFOs in euro area countries say now is a good time to take on risk, compared to 24 per cent in non-euro countries.