Slow but sustained recovery
Deloitte Belgian CFO Survey Q2-2010
The latest CFO survey shows moderate confidence in the economy: only 20% of Belgian respondents believe a double dip scenario - characterized by a renewed period of contracting economic activity - is likely to materialize. A vast majority of Belgian CFOs believe the recovery will be slow, but sustained.
As a consequence of the anticipated slow recovery, most CFOs do not expect demand for their products and services to accelerate before next year.
Overall, CFO optimism has reached the highest levels since the start of the survey at the end of 2008, and has increased significantly since the last quarter.
The proportion of CFOs expecting declining cash-flow in the next 12 months has continued to shrink quarter by quarter to only 10% now.
Moreover, 80% of the CFOs report the financial results of their organisations are on budget. 42% of surveyed CFOs even report actual performance in the first 2 quarters of the year has outperformed budgets.
CFO sentiment is consistent with Belgian macro-economic indicators. The consumer confidence indicator has recovered in June, after a slow down in the last months. It is also consistent with the German data: the Ifor-barometer rose to the highest level in 3 years.
But Belgian CFO confidence is inconsistent with the results of the latest editions of the Deloitte UK and Netherlands CFO survey: in the UK and the Netherlands CFO confidence dipped for the second consequetive quarter, bringing it to the lowest level in a year.