BlogLatest NewsCorporate confidence in UK recovery at six-year high

Corporate confidence in UK recovery at six-year high

The British economy is to receive a welcome boost after big businesses announced they are ready to invest again, while the high street enjoyed its best March in four years.

Corporate confidence and risk appetite among leading UK companies has hit a six year high, which will turn lead to expansion, investment and recruitment, according to Deloitte’s survey of 126 chief financial officers.

The accountancy firm’s quarterly CFO Survey, found that 95pc of those polled said that prospects for economic activity in the UK have improved over the last six months, with increasing optimism in both the US and eurozone recovery. In a reversal of thinking, confidence in the emerging markets has plummeted.

“These companies are no longer constrained by the economic uncertainty of the eurozone and a shortage of capital,” said Ian Stewart, chief economist at Deloitte. “Sentiment has also been buoyed by a rally of European assets over last year.”

The report revealed that CFOs were bullish on all forms of capital issuances: bank borrowing, equities and bonds, while 31pc were more optimistic about their company’s financial position than three months ago, the highest level in four years.

Buoyed by strong balance sheets, 81pc expect UK corporates to start hiring again in the next 12 months, and a record 95pc predict that M&A activity will rise over the course of 2014.

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