Insider Media Limited

Optimism among the chief financial officers (CFOs) of the UK’s largest businesses has declined for the third consecutive quarter to the lowest levels since spring 2009. That's according to Deloitte, which reports in its CFO Survey that 75 per cent of those surveyed believe now is not a good time to take risks.

As a result, their priorities are reducing costs and increasing cash flow. But the remaining 25 per cent disagree, saying now is a chance to introduce new products and services or expand into new markets or acquire other businesses.

The survey reveals that cash is less of a concern for large corporates than it was a year ago, reflecting improvements in credit availability and stronger corporate cash flow.

CFOs also rated credit as being “available” rather than “hard to obtain”, as reported previously.

Chris Loughran, Deloitte Midlands practice senior partner, said: "UK corporates entered 2010 with a cautious view on the sustainability of the recovery and have stuck to this view. The dominant themes we saw in the first half of 2010 continue into the second half of the year.

"Financial optimism among CFOs has dipped further and although credit conditions have continued to improve, corporates remain strongly focused on cost control.

"The financial and credit crisis may seem to be over, but the headwinds from the recession, especially in the form of overleveraged consumer and government sectors, are leaving CFOs cautious on the recovery. They are reacting by cutting discretionary spending and holding back on hiring."