CFOs are starting the year in a buoyant mood and are gearing up for expansion, investment and hiring in 2014, according to research from Deloitte.

The firm's Q4 2013 CFO Survey shows that business confidence has improved for the sixth consecutive quarter, while 57% of CFOs say that now is a good time to take risk onto their balance sheets, the highest level since the survey started six years ago.

The proportion of CFOs who feel their business faces increased levels of economic and financial uncertainty has dropped to 60%, the lowest in more than three years, and there has been a sharp decline in the numbers who feel the UK could fall back into recession. This now stands at 16% compared to 40% a year ago.

The research, which is based on the views of 122 CFOs, including 32 FTSE 100 and 41 FTSE 250 companies, also found that 70% of CFOs expect UK corporates to increase hiring in 2014, 65% plan to increase capital spending and 46% expect an increase in discretionary spending.

For the first time since the financial crisis, Deloitte's survey shows CFOs now believe that bank borrowing offers the most attractive source of funding for their businesses, with 80% saying bank credit is an attractive source of finance.

Nine out of ten respondents expect to see revenues increase in 2014 and 88% predict an upturn in M&A activity.

Ian Stewart, chief economist at Deloitte, said: 'Uncertainty and credit shortages, two major blocks on business activity, have eased substantially and CFOs believe that the level of financial and economic risk facing their businesses has reduced significantly in the last year. Whether through introducing new products and services, M&A or moving into new markets, expansion is firmly back on the agenda.'