The Deloitte CFO Survey, 2008 Q2
The Hunt for Liquidity
This quarter's Deloitte CFO Survey has shown that CFOs are seeing a sharp decline in the availability and a marked rise in the cost of credit. Debt is increasingly out of favour. The survey key findings are:
- Corporate liquidity is coming under pressure as credit becomes scarcer. Debt is out of favour with corporates.
- UK Chief Financial Officers (CFOs) report a sharp decline in the availability of credit and a marked rise in the cost of credit.
- Two thirds of CFOs disagree with the notion that the worst effects of the credit crunch have passed.
- The balance of opinion among CFOs is that UK corporates are over-leveraged, a marked change from September last year when the dominant view was that corporates were under-leveraged.
- A majority of CFOs think that UK corporate profits in 2008 will grow more slowly than the 5.0% expected by the City.
- Nonetheless, CFOs see value in UK equities and have become significantly more positive on the outlook for M&A and private equity activity.
- 54% of corporates are likely to raise prices in response to rising inflation; 45% expect margins to be squeezed by inflation.
If you would like more details about the Deloitte CFO Survey please contact Ian Stewart in Research on 020 7007 9386.
Download the full report: The Deloitte CFO Survey - The Hunt for Liquidity: 2008 Q2 results. (PDF, 543KB)
The Deloitte CFO Survey 2008 Q1 results
The Deloitte CFO Survey 2007 Q4 results