Managing Costs still top priority for CFOs fearing double dip recession

A survey carried out recently by Deloitte found that the number of CFO’s feeling optimistic about the UK economic outlook has dropped from 40% in Q1 to only 24% in Q2. The main reason appears to be increasing fears of a double-dip recession resulting, at least in part, from uncertainty about what impact public spending cuts and tax rises will have on the private sector. The average CFO now feels the probability of another recession stands at 38%, up from 33% in Q1.¹

While lack of liquidity and the availability of cash is less of a concern than at the height of the credit cruch, CFO’s are still worried about growth, especially given the weakness of the global recovery and the UK’s export market, so maintaining tight control of their costs is still a top priority.

This certainly seems to be bourne out by the level of enquiry we are experiencing. Our client base has risen by 11.4% this year, and income returns reported by our consultants are also rising strongly as more and more organisations realise effective cost management is vital to their future – not just a ‘nice to have’ – and look for professional help and advice.

¹ Telegraph Online, 5th July 2010