UK CFOs & FDs 2014 Economic Forecast

January 8th 2014 | Posted by phil scott

Latest survey of the UK’s top Financial Directors predicts steady growth for businesses in 2014

A recent survey of 400 Financial Directors from the UK’s leading companies is predicting a strong start to the New Year.  Over 60% of those surveyed felt the economy is likely to be better than 2013, while just 6% believed it could be worse.  65% stated they believed it could be 2-3 years before the economy recovers properly and businesses experience some growth.

The survey, conducted by FD Recruit Ltd a UK Leading recruiter of Finance Directors & CFOs supports the forecast made by the Chancellor in his December Autumn Statement  and the latest predictions that the UK economy will grow by as much as 2.4% next year.

Over 71% of respondents are forecasting that their companies will increase their turnover during the next 12 months and 80% of respondents also stated that their companies will be increasing their capital expenditure levels during 2014. The largest CAPEX is expected to be in plant and machinery and in IT & new technology.
The Financial Directors’ surveyed are predicting some sectors will outperform others in 2014, specifically:

– Energy & Utilities
– Professional & Business Services
– Healthcare & Biotechnology
– IT & Telecoms

41% of the FDs taking part say their organisations have a budget to increase the workforce and create new jobs in 2014 which is more good news for the economy and the government in their target of reducing unemployment. The remainder of the FD’s say headcount will stay roughly the same with 15% of FDs are planning some form of headcount reduction.