UK finance bosses doubt V-shaped recovery, expect slow rebound

Almost half of the 109 chief financial officers taking part in the survey said demand will not return to pre-pandemic levels until after the second quarter of 2021.

Almost half of the chief financial officers at the UK’s biggest companies think demand will not rebound quickly after the pandemic, casting doubt on the V-shaped recovery predicted by a number of prominent economists.

A 20 July survey from Deloitte found that 49% of CFOs believe that demand for their firm’s services will not return to pre-pandemic levels until after the second quarter of 2021. A third estimated recovery in the first half of next year, while 10% said their business had already bounced back. The Big Four firm’s survey of 109 chief financial officers was conducted between 26 June and 8 July.

“Chief financial officers of Britain’s largest businesses are not expecting it to be ‘V-shaped’,” the Deloitte survey said. The statement goes against the recent prediction from the Bank of England’s chief economist Andy Haldane and Morgan Stanley strategists supporting a quick rebound.

Source: Financial News (2020)

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