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Business optimism among UK CFOs has fallen to its lowest level in six years, according to the latest Deloitte CFO survey.
The study, conducted between 16 and 30 March 2026, revealed business optimism dropped to a net -57%, down from the -13% recorded in the previous quarter.
Finance leaders cited the conflict in the Middle East as the primary driver for the slump, while high energy prices and inflation remain the top concerns for 61% of respondents.
The data shows 60% of executives also expect an increase in cyber-attacks over the next three years. This is a sharp rise from the 44% reported in the previous year.
According to the firm, corporations are now prioritising cost reduction and cash flow over capital spending. Hiring expectations have also weakened as firms move toward more defensive financial strategies to manage external risks.
Deloitte chief economist Ian Stewart said: “The conflict in the Middle East is reshaping business sentiment: it’s created a shock to CFO confidence, lowering optimism to levels we haven’t seen since the early days of the Covid-19 pandemic. Finance leaders are coping with high levels of external uncertainty, and their focus is on managing risks from geopolitics, rising energy prices and higher financing costs.
“Rarely in the last 16 years have UK CFOs been more focused on cost control than today. This challenging environment is prompting CFOs to scale back expectations for margins and sharpen their focus on cost reduction and cash conservation. The immediate priority for finance leaders is to strengthen balance sheets in the face of external headwinds.”
