www.bbc.com Open in urlscan Pro
151.101.64.81  Public Scan

Form analysis
0 forms found in the DOM

Text Content

LET US KNOW YOU AGREE TO COOKIES

We use cookies to give you the best online experience. Please let us know if you
agree to all of these cookies.

Yes, I agree

No, take me to settings

BBC Homepage
 * Skip to content
 * Accessibility Help

 * Sign in


 * Home
 * News
 * Sport
 * Reel
 * Worklife
 * Travel
 * Future
 * More menu

More menu
Search BBC
 * Home
 * News
 * Sport
 * Reel
 * Worklife
 * Travel
 * Future
 * Culture
 * Music
 * TV
 * Weather
 * Sounds

Close menu
BBC News
Menu
 * Home
 * War in Ukraine
 * Coronation
 * Climate
 * Video
 * World
 * UK
 * Business
 * Tech
 * Science

More
 * Stories
 * Entertainment & Arts
 * Health
 * World News TV
 * In Pictures
 * Reality Check
 * Newsbeat
 * Long Reads

 * Business
 * Market Data
 * New Economy
 * New Tech Economy
 * Companies
 * Technology of Business
 * Economy
 * CEO Secrets
 * Global Trade
 * Cost of Living




BIG FIRMS A LOT MORE CONFIDENT ABOUT THE FUTURE

Published
17 April
comments
Comments

Share
close panel
Share page
Copy link
About sharing
Related Topics
 * Brexit

Image source, Getty Images
By Simon Jack
Business editor


Confidence among finance chiefs at the UK's biggest companies has seen its
sharpest rise since 2020.

The Deloitte survey of chief financial officers showed sentiment rebounded as
their concerns about energy prices and Brexit problems eased.

There were 25% more chief financial officers feeling better about the future
than worse, compared to 17% more feeling the opposite three months ago.

Not since the Covid vaccine rollout has there been such a swing in confidence.

Ian Stewart, chief economist at Deloitte, attributed the bounce back to
improvements on several fronts at once.

"Since the beginning of the year, energy prices have fallen, inflation looks to
have peaked, relations with the EU have improved since the Windsor framework and
there has been a period of comparative political calm after the turmoil of last
year."



The survey was conducted from 21 March to 3 April, which was in the aftermath of
the collapse of Silicon Valley Bank in the US and the forced merger of Credit
Suisse with UBS.

Yet despite concerns these events raised about the health of the banking sector,
the chief financial officers reported only modest changes to the cost and
availability of credit.

 * Britain's economy is back, says chancellor
 * UK to be one of worst performing economies - IMF

The UK chief financial officers surveyed are predominantly from big companies,
often part of global operations, and Mr Stewart conceded there was often a
disconnect between their experience and smaller companies which have seen a
sharp rise in insolvencies.

"In many ways it mirrors what we are seeing at household level. The difference
between the haves and the have nots is widening."

Despite the change in mood, chief financial officers are still feeling risk
averse with many saying their priorities were cutting costs and building up cash
reserves. That will be a disappointment to the government who is keen for
businesses to invest now to spur future economic growth.

One exception to that is investment in artificial intelligence. Deloitte found
that an overwhelming majority of chief financial officers expect to see
significant growth in spending on AI over the next five years but were divided
on whether that would lead to an increase or decrease in the number of
employees.



The UK economy has been struggling recently due to high gas prices, rising
interest rates and a sluggish trade performance. Business investment has also
been weak.

Last week, the International Monetary Fund said Britain would be one of the
worst performing major economies in the world this year, shrinking by 0.3%.

However, this prediction is slightly better than its previous expectation of a
0.6% contraction, made in January. And a separate forecast published by the EY
Item Club on Monday finds the UK is now expected to grow by 0.2% this year - up
from a previously forecast contraction of 0.7%.

Hywel Ball, EY's UK chair, said the economy "seems to be turning a corner,
albeit very slowly" but added that the challenges "haven't gone away overnight".

"Inflation is still in double-digits and energy prices remain historically
high... However, perceptions matter and the fact the economy has been able to
outperform expectations could help stir a revival in business and consumer
confidence."


RELATED TOPICS

 * Companies
 * Deloitte
 * Inflation
 * Brexit


MORE ON THIS STORY

 * Britain's economy is back, says chancellor
   
   Published
   14 April
   
   

 * Strike action sees UK economy flatline in February
   
   Published
   13 April
   
   

 * UK to be one of worst performing economies - IMF
   
   Published
   11 April
   
   

View comments




TOP STORIES

 * Ukraine claims Bakhmut gains after Russia denials
   
   Published
   4 hours ago

 * Live. 
   
   Ex-Marine charged over New York subway death

 * Imran Khan to be released from custody, court rules
   
   Published
   1 hour ago




FEATURES

 * ‘You don’t think of yourself as a gay icon’
   
   

 * The man who bet his house on Eurovision
   
   

 * Which European nations are winning the heat pump race?
   
   
 * 

 * Weekly quiz: What's Tom Hanks' debut novel called?
   
   

 * Wooing expat voters with post-Brexit woes in Spain
   
   

 * Foreign affair: Five times the US wowed Eurovision
   
   

 * The party they can't stop winning in Thailand
   
   

 * Angel wings and chess champs: Africa's top shots
   
   

 * How our genes influence our decisions
   
   




ELSEWHERE ON THE BBC

 * Three job categories safe from AI
   
   

 * The films 'too bad for the cinema'
   
   

 * Why did the US plan to nuke the Moon?
   
   




MOST READ

 1.  1
     Ukraine claims Bakhmut gains after Russia denials
 2.  2
     Ex-Marine surrenders after New York subway death
 3.  3
     Pets must not replace children in Italy, warns Pope
 4.  4
     YouTuber admits to crashing plane for views
 5.  5
     SA tries to defuse US fears over Russia arms sales
 6.  6
     Archbishop of Canterbury fined for speeding
 7.  7
     Astronomers detect largest cosmic blast ever seen
 8.  8
     Imran Khan to be released from custody, court rules
 9.  9
     Wooing expat voters with post-Brexit woes in Spain
 10. 10
     The man who bet his house on Eurovision





BBC NEWS SERVICES

 * On your mobile
 * On smart speakers
 * Get news alerts
 * Contact BBC News

 * Home
 * News
 * Sport
 * Reel
 * Worklife
 * Travel
 * Future
 * Culture
 * Music
 * TV
 * Weather
 * Sounds

 * Terms of Use
 * About the BBC
 * Privacy Policy
 * Cookies
 * Accessibility Help
 * Parental Guidance
 * Contact the BBC
 * Get Personalised Newsletters
 * Why you can trust the BBC
 * Advertise with us
 * Do not share or sell my info

© 2023 BBC. The BBC is not responsible for the content of external sites. Read
about our approach to external linking.