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Deloitte Survey: UK CFOs Express Concern Over Euro Break-Up

Deloitte Survey: UK CFOs Express Concern Over Euro Break-Up

The most recent Deloitte CFO Survey found that chief financial officers of the UK's largest businesses point to a potential euro break-up as the leading risk factor for their companies heading into the new year.

According to the survey, which was conducted between December 7 and 19 and included responses from 94 finance chiefs, respondents believe there is a 37 percent chance of at least one country exiting the euro in 2012.

The finance chiefs were concerned about the potential trickle-down effect this could have on UK businesses, from volatile exchange rates and asset prices to a possible new credit crunch.

"Against such a backdrop it is no surprise that a return to recession in the UK is, after the euro, the second biggest concern for CFOs in 2012," noted Ian Stewart, the chief economist for Deloitte. "CFOs are now working on the assumption that Britain will fall back into recession. They see a 54 percent chance of the UK suffering a ‘double dip’, up from just 27 percent a year ago."

CNBC reports the results of the survey were made public on the same day that Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI) rose slightly to 46.9 in December, but this still showed a contraction for the fifth consecutive month.