Research by Deloitte revealed that business trust among chief financial officers has seen its highest level since 2020, jumping 8 percent in the wake of the spring budget.
The survey showed that 25 percent of CFOs were feeling better about the future rather than worse, which was up from 17 percent three months earlier.
The findings highlight that sentiment among businesses is taking a turn as concerns about macro issues such as energy prices and Brexit woes ease as the economy improves.
The CFOs interviewed were mostly big corporations, and despite the shift in mood, many still looked to avoid risk by prioritizing things like cutting costs and building up cash reserves as they prepare for the future.
Khaled Taloker, Co-Founder DKK PartnersHe said: “It is great to see businesses regaining confidence in themselves, and the economy, as the UK rebounds and avoids the expected technical recession, feeding optimism to business leaders. Businesses have been taking constant beatings over the past few years and, more recently, due to inflation, High interest rates have led to a surge in budgets at the end of 2022, and their confidence has taken a huge hit.”
“As the UK’s economic situation looks less bleak than initially imagined, business owners can look forward to a brighter future and return to the market after a turbulent few years. A growing economy will empower businesses with the confidence they need to re-engage in normal business operations. For the economy This is great news because SMEs act as the backbone and play a vital role in continued growth.While this is positive news, we still have to be careful because the risk of a recession is not completely ignored, however, companies can remain optimistic as they continue Take positive steps towards economic recovery.
Hywel Paul, head of UK EY, said the economy “appears to be turning a corner, albeit very slowly” but added that the challenges “didn’t go away overnight”.
“Inflation remains in the double digits and energy prices remain historically high… However, perceptions matter and the fact that the economy has managed to beat expectations can help spark a recovery in business and consumer confidence.”