Deloitte recent survey, European Survey - Spring 2018, of 1,652 CFOs in Europe showed that CFOs across Europe remain focused on their company’s growth despite levels of optimism and revenue expectations softening since their last survey in autumn 2017.

Key findings

Deloitte report that, “CFOs remain fairly confident about the future, although their mood has turned from overly optimistic to normal. The external financial and economic environment remains highly uncertain for many CFOs. Nonetheless, a growing number of them now consider this a good time to take on more risks, add to their workforce and invest.”

Source & Copyright©2018 - Deloitte

Country variations as Brexit uncertainty bites

Overall there is improved outlook for capex and hiring, with:

• 69% of CFOs in Ireland and France say they plan to increase capex, the highest across the 20 countries, compared to a low of 18% in the UK
• 42% of CFOs say they plan to increase employee numbers in the next 12 months, up from 38% in Q1. CFOs in Ireland are the most optimistic about employee numbers, with 69% forecasting an increase, while just 15% of CFOs in the UK plan to increase hiring, the lowest.

CFOs remain focused on expansion

In 11 of the 20 countries surveyed, CFOs cite more expansionary balance sheet measures as priorities than defensive measures, with organic growth the main expansionary focus for CFOs. This is broadly unchanged from the previous survey when CFOs in 11 of 19 countries were prioritizing expansion.

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CTMfile take: Brexit impact is starting to be understood by CFOs. However, the huge elephants in the room - the possibility of a eurozone crisis and the impact of climate change on Europe - are not really addressed.