The quarterly Deloitte survey of 130 CFOs, which included the CFOs of 25 FTSE 100 companies and 53 FTSE 250 companies, found the a more optimistic view of the prospects for business in the UK.
While 60% of the CFOs surveyed, representing 15% of firms in the UK quoted equity market, still expected worsening conditions due to Brexit, this had fallen from 68% who felt the same in July last year.
The proportion of CFOs who expect Brexit to reduce their own hiring plans in the next three years had more than halved, from 66% after last June’s referendum to 30% in the first quarter of 2017.
Those who believe Brexit will hit investment also fell, from 58% last year to 26% now, and the vast majority of CFOs no longer believe it will lead to lower M&A activity, with only 11% believing it will.
Ian Stewart, UK chief economist at Deloitte, said: “A more stable environment has bolstered corporate risk appetite and a laser-like focus on cost control and building cash flow has softened, with more weight placed on capital spending and expansion.”
Just under half of CFOs expected UK corporate revenues to increase this year, but on balance think operating margins may fall.
