Faced with a more uncertain economic climate, a record number of finance leaders expect operating costs to rise in the year ahead, according to Deloitte’s UK CFO Survey Q1 2022
Almost half of CFOs (46%) expect the rise in operating costs to be significant. This has had a knock-on effect on the outlook for corporates’ margins. A majority of CFOs (71%) believe operating margins will fall over the next 12 months, compared to 44% in the previous quarter. But despite this, three-quarters expect revenues to rise over the next year.
Meanwhile, capital spending remains a strong priority for 21% of CFOs, even with a more challenging operating environment. Although this has dropped from last quarter’s record high (37%), it remains considerably above the five-year average of 14%.
Conducted between 16 and 30 March 2022, Deloitte’s latest quarterly CFO Survey captured sentiment amongst the UK’s largest businesses, against a backdrop of Plan B Covid-19 restrictions easing and after the Russian invasion of Ukraine.
