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Inflation and rising interest rates are under pressure, and British corporate CFOs are turning conservative on the outlook
Summary: ① Financial executives at Britain's top companies have become more cautious in the face of high inflation and rising interest rates, expecting slower hiring and pay growth, a survey released on Monday showed.
② Deloitte's quarterly survey shows that the proportion of corporate chief financial officers (CFOs) who are more optimistic about their business prospects is negative 10 percentage points, compared with positive 25 percentage points three months ago.
③ Ian Stewart, chief economist at Deloitte, said that under the weight of rising inflation and interest rates, the strong optimism in the spring has faded, and "companies are increasingly focusing on cost reduction and cash control."
④ The survey showed early signs of cooling in the labor market, with corporate CFOs stating that recruitment difficulties have eased further and wage growth has slowed.
⑤ The Bank of England has said that wage growth is too fast and is closely watching the labor market. The Bank of England is considering whether to raise interest rates for the 14th time in a row on August 3 in response to high inflation.
⑥ Corporate CFOs believe that tightening monetary policy is the main threat to business, surpassing the geopolitical and energy price factors that have dominated the past two years.
⑦ The survey was conducted between June 15-27, with 69 CFOs participating, including 13 from FTSE 100 companies and 21 from FTSE 250 companies
Source: Huitong Finance