Business sentiment among CFOs in Ireland declines, but majority still anticipate revenue growth, new Deloitte survey finds
- 81% of CFOs in Ireland believe it is not an opportune time to take on greater risk
- Retaining and attracting skilled talent remains top business risk
- CFOs focusing on digitalisation and technological transformation as business priorities
12 December 2024: Business sentiment among Chief Financial Officers (CFOs) in Ireland has declined dramatically with just 19% feeling ‘more optimistic’ about the financial prospects of their companies compared with 61% in Spring of this year, new research from Deloitte finds.
The figure is down from 63% in Autumn 2023 and comes as the proportion of CFOs who now feel ‘less optimistic’ about their companies’ financial outlook has tripled, from 8% in Spring 2024 to 28% in Autumn 2024.
The Deloitte survey is part of a larger poll reflecting insights from almost 2,000 senior finance leaders across 27 European countries. Participants in Ireland, questioned by Red C research, found that the proportion of CFOs planning to increase hiring here has significantly dropped by almost half in the last year, from 58% in Autumn 2023 to 31% in Autumn 2024. It also shows that a significant majority of CFOs (81%) believe that it is not an opportune time to take on greater risk on their balance sheet, up from 71% in Spring 2024.
The proportion of CFOs anticipating revenue growth over the next 12 months has dropped from 74% in Spring 2024 to 59% in Autumn 2024 while the proportion of those optimistic about an increase in operating margins has decreased from 53% in Spring 2024 to 37% in Autumn 2024.
Asked to select the factors that are likely to pose a significant risk to their business over the next 12 months, almost 9 in 10 of those surveyed (89%) cited retaining and attracting skilled and qualified talent with 76% raising concerns about the economic outlook and growth risks. A total of 76% identified cybersecurity risks while 74% selected increasing regulations.
Asked about the priorities for their business in the next 12 months, nearly half (48%) of the CFOs surveyed selected digitalisation and technological transformation. A total of 44% said they planned to review supply chain efficiencies while 37% selected organic growth and 35% cited the introduction of new products and services.
The survey shows the outlook for capital expenditure (CAPEX) among CFOs in Ireland remains positive, with 42% planning to increase their CAPEX over the next 12 months.
Tom Hynes is a partner in Deloitte Ireland who led the survey in Ireland:
The survey results clearly show a decline in optimism among CFOs in Ireland and an increased wariness when it comes to financial risk. Several factors are likely contributing to this including the uncertain economic outlook and tight financing conditions. Geopolitical uncertainties, with fears over protectionism, trade disruption and high costs around labour and energy will also add to this.
While they are right to be cautious, it is positive that the majority of CFOs remain hopeful about revenue growth over the next 12 months and over a third still expect an increase in operating margins. A significant proportion also plan to cautiously increase capital expenditure, reflecting a measured investment approach. CFOs are acknowledging that they need to adapt to evolving regulations by maintaining robust compliance systems and proactively managing regulatory risks.
A balanced approach is also being applied to the business priorities identified by CFOs. It is encouraging to see that they are combining defensive strategies, such as reviewing supply chain efficiencies and fostering economic growth, with expansionary strategies such as digitalisation and technological transformation.
Leveraging advanced technologies such as GenAI, can assist companies in driving efficiency and innovation, providing them with a competitive advantage. Combining investment in this area with enhanced operational resilience and sustainable development is a prudent approach that should position companies well for future success.
About the Deloitte European CFO Survey
The Autumn Deloitte European CFO Survey is the 20th edition of a bi-annual research project that gathers insights from Chief Financial Officers of leading companies in 27 European countries. The data for this edition was collected in September and October 2024 and reflects responses from 1,893 CFOs in 27 countries across a wide range of industries, including 54 CFOs in Ireland.
About Deloitte
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In Ireland, Deloitte has approximately 3,000 people providing audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience and insight to collaborate with clients so they can move forward with confidence.
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Media Contact(s):
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Deloitte Ireland Communications
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Deloitte Ireland Communications
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