UK firms have sharpest rise in confidence since 2020

UK chief financial officers (CFOs) have seen the sharpest rise in confidence since 2020, according to a survey by Deloitte.

The improvement came as CFOs became less concerned about energy prices and Brexit-related issues. 

The survey, conducted between 21 March and 3 April, showed that 25% of CFOs felt better about the future than worse, compared to 17% feeling the opposite three months ago. 

Deloitte chief economist Ian Stewart attributed the rebound to simultaneous improvements in areas including the lowering of energy prices, inflation peak and the improvement of relations with the EU since the Windsor framework. 

Despite the rise in confidence, CFOs remain risk-averse, prioritising cost-cutting and the building of cash reserves, which is likely to disappoint the UK government, which is keen for businesses to invest to stimulate future economic growth. However, CFOs expect significant growth in spending on artificial intelligence over the next five years.