Caution rises among top finance officers

FINANCE leaders are predicting the steepest drop in corporate recruitment since in almost five years due to escalating geopolitical threats.

- SAMUEL NORMAN

A new study by Deloitte indicates a weakening job market, with wage growth anticipated to decelerate from 3.6% to 3%.

A net 14% of CFOs reported feeling more negative about their business outlook compared to three months ago.

This sentiment follows a hit to business confidence in the wake of the Autumn Budget. Chancellor Rachel Reeves’ series of tax increases has resulted in companies either scaling back on hiring or raising prices.

A net 63% of those surveyed anticipate operating costs to rise over the next year.

In contrast, only 35% forecast revenue growth, with most expecting shrinking margins.

The report suggests that executives predict interest rates will drop to 4%, with inflation projected at 3.1% for the coming year.