Optimism among chief financial officers has hit its highest level for two years, according to a survey released by Deloitte today. This optimism doesn't stretch far however, with only 14% of those questioned for the CFO survey believing that the sector will have a normal recovery next year. In fact, nearly three-quarters of CFOs have predicted that growth will remain sluggish in their own markets next year, and 12% have predicted it may contract. Sentiment is that the recession will bring about a lasting change to the way corporates structure balance sheets, with 70% of respondents predicting this will be the case, as more companies turn away from bank borrowing in favour of equity and corporate bond finance. 'While the economic outlook has improved, CFOs remain cautious. 79% think now is not a good time to take risk onto their balance sheet and debt remains out of favour. Many more CFOs plan to reduce debt over the next year than raise it,' said Margaret Ewing, vice chairman and partner at Deloitte. Ian Stewart, Deloitte chief economist, added: 'Most corporates continue to rate credit as costly and hard to obtain. It is clear that disruption in the financial system has fundamentally changed CFOs' preferences for financing their businesses.'