Top CFOs predict business demand will not recover until after Q2 2021

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CFOs think British business demand won’t recover before summer 2021, a Deloitte survey found. 75% expect the COVID-19 pandemic to have 'significant' or 'severe' negative effects on their businesses over the next 12 months.

The outlook for Britain’s biggest companies is worsening and won’t recover to pre-pandemic levels until at least the second half of next year, as the country falls deeper into recession.

“With further restrictions coming into effect, businesses have scaled back expectations and are focused on strengthening their businesses and their balance sheets,” he added.The U.K. economy grew less than expected in August, heaping more pressure on policy makers to support the economy, according to data published by the Office for National Statistics on Oct. 9. Gross domestic product rose by 2.1% in August, compared with growth of 6.4% in July.

Responding to Johnson, the Confederation of British Industry said in a statement that a deal “is the only outcome that protects COVID-hit livelihoods at a time when every job in every country counts.”Around a third of CFOs said they would reduce hiring in the event of a ‘no-deal’ scenario, compared with 15% in a thin-deal one, which would ensure tariff-free goods-trade only.

 

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