This is Deloitte's 41st quarterly survey of chief financial officers and group finance directors of major companies in the UK.

Optimism among chief financial officers has rebounded close to levels logged at the end of last year, recovering from post-UK election lows in the face of Brexit-induced tumult, new data has shown.

Although concerns over the long-term effects of the UK’s divorce from the European Union have cooled, Brexit still tops the list of risks cited by CFOs as they remain on a defensive footing, according to a survey conducted by Deloitte. 

“Optimism among CFOs has rebounded after a slump following the snap general election and perceptions of uncertainty have eased to almost half the level seen immediately after the referendum,” Ian Stewart, chief economicst at Deloitte, said. “Despite Brexit uncertainties, a broadening global recovery has helped lift sentiment among CFOs.”

Over a quarter (27 per cent) of CFOs of 102 FTSE 350 and “other large private companies” surveyed by the Big Four firm said they were more optimistic about their company’s prospects than they were three months ago, up from 18 per cent in the previous quarter. Some 27 per cent also said they were less optimistic, down from 42 per cent in the second quarter of this year. 

The survey’s findings come at a time of political turbulence in the UK, with Brexit bickering continuing in Brussels as the UK tries to secure the best deal possible for the nation and its financial services sector. Interestingly, another survey, issued today, states that less than half of EU nationals working in the UK think they will stay in the country if Theresa May's government can't reach a negotiated deal with the bloc. (See that story here.)

Over a third (34 per cent) said that the level of uncertainty facing their business was “high or very high”, down from 43 per cent in the last quarter and almost half the level reported immediately after last June’s referendum. 

Nearly a quarter (24 per cent) have said that now is a good time to take risk onto their balance sheet, a slight rise from 22 per cent in Q2 but trifold the level seen after the Brexit vote. 

Cutting costs was still CFOs’ main priority, and 41 per cent cited this as a “key focus”, albeit down from 46 per cent in the last quarter. This was followed by introducing new products and services (39 per cent) and increasing cash flow (35 per cent).

“It is testament to the changeable business environment that, eight years into the UK recovery, CFOs remain on a cautious footing with cost control still the number one balance sheet priority,” Stewart said.

Regardless of the shape Brexit takes, nearly two-thirds (60 per cent) of CFOs said the business environment would be worse once the UK exits the bloc. This figure, however, dropped 12 per cent over the third quarter, which suggested a somewhat more positive outlook on Brexit even though European political tensions have brewed. 

“Concerns over Brexit look to have eased slightly in this latest survey with just under two-thirds of CFOs expecting an adverse effect on the business environment, down from nearly three-quarters in Q2,” David Sproul, senior partner and chief executive of Deloitte Northwest Europe, said.

He continued: “However, CFOs continue to see Brexit as being the top risk facing business. CFOs expect Brexit to have an impact on their business decisions, with almost a third expecting it to reduce their investment plans over the next three years and a third expect it to hit hiring.

“It is critical that progress is achieved soon in the negotiations between the UK and the EU to provide more certainty to business and to deliver a real boost to corporate spirits and plans.”