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UK CFO Optimism Falls to Lowest Level Since 2009

UK CFO Optimism Falls to Lowest Level Since 2009

The optimism of finance chiefs around the world has taken a hit due to the lack of progress seen in the economic recovery, and this trend was highlighted in a recent UK survey.

According to the research conducted by Deloitte LLP, optimism among CFOs of major UK companies dropped to its lowest level since 2009 during the third quarter, with 43 percent of finance chiefs expecting Britain to experience another recession, a 10 percent increase from the prior quarter.

"This quarter’s CFO Survey shows that uncertainty and weaker growth have had a marked effect not just on corporate sentiment but also on priorities," Margaret Ewing, a senior Deloitte partner and former CFO of airport operator BAA, said in the survey. "The world has become riskier and more uncertain for corporates. Most think that a period of margin expansion is drawing to an end. CFOs are responding with a renewed focus on cost-control."

According to Bloomberg, the decreasing optimism among UK CFOs was fueled by the Bank of England recently announcing its largest stimulus since the height of the recession. Additionally, the British economy grew less than expected during the second quarter, the news provider noted.