The firm’s poll of 112 CFOs of FTSE 350 and other large private companies just before Christmas identified Brexit as continuing to be the top concern for business, with a ranking of 62, up from 58 the previous quarter.

Brexit is followed by weak demand in the UK (59, up from 53) and weak UK productivity (49, up from 43).

Over a third (38%) of CFOs say there is a high or very high level of uncertainty facing their business, up from 35%. However, Deloitte says this proportion has fallen from 50% one year ago and  is well below levels seen during the euro crisis and in the wake of the EU referendum.

More CFOS (73%) now say they expect the overall business environment to be worse following Brexit, up from 60% in Q3 and the highest reading yet.  There is also an increase in those expecting their capital spending to decrease (39%), up from 30%.

This is matched by a fall in confidence: 18% of CFOs say they are more optimistic about the prospects for their company than they were three months ago, down from 27% in Q3’s survey.

Half (51%) of CFOs say that reducing costs is a strong priority for their business over the coming 12 months.

However, Deloitte reports the priority CFOs attach to expansion over the next 12 months is at its highest level since this question was first asked in 2009.

Ian Stewart, chief economist at Deloitte, said: ‘Despite December’s agreement to move forward to trade talks with the EU, CFO’s concerns about Brexit have mounted and it remains at the top of the list of risks for business in 2018.

‘CFOs enter 2018 more focussed on controlling costs than at any time in the last eight years. Despite this, CFOs are more optimistic today than they have been in the last two years and perceptions of uncertainty are far lower than during the euro crisis and following the EU referendum.’

Deloitte CFO Survey: 2017 Q4 is here.

Report by Pat Sweet