Business sentiment among chief financial officers (CFOs) in Ireland has plummeted over the past six months, with just 19% saying they are “more optimistic” about their financial prospects, a new survey by consultancy firm Deloitte has found.
This is a steep drop from the 61% of CFOs who reported being “more optimistic” during the spring survey earlier this year and down from the 63% reported during the same period in 2023.
In the same time, the proportion of Irish CFOs who reported being “less optimistic” increased from 8% in the spring to 28%.
In addition to the drop in optimism, 81% said they believe that it is not an opportune time to take on greater risk on their balance sheet, while just 31% said they are planning on increasing hiring.
Partner at Deloitte Ireland Tom Hynes said the survey shows a “clear decline in optimism” among CFOs and an “increased wariness when it comes to financial risk”.
“Several factors are likely contributing to this, including the uncertain economic outlook and tight financing conditions. Geopolitical uncertainties, with fears over protectionism, trade disruption, and high costs around labour and energy will also add to this,” he said.
“While they are right to be cautious, it is positive that the majority of CFOs remain hopeful about revenue growth over the next 12 months and over a third still expect an increase in operating margins,” he added.
The survey found 59% of CFOs anticipate revenue growth over the next year — down from 74% during the spring.
When participants were asked to select the factors that pose a significant risk to their business over the next 12 months, 89% cited retaining and attracting skilled and qualified talent, with 76% raising concerns about the economic outlook and growth risks.
A total of 76% identified cybersecurity risks, while 74% selected increasing regulations.
In terms of priorities over the next year, just under half — 48% — said it would be digitalisation and technological transformation. A total of 44% said they planned to review supply chain efficiencies, while 37% selected organic growth and 35% cited the introduction of new products and services.
The survey was part of Deloitte’s bi-annual research project that interviews CFOs across 27 European countries. The data for this edition was collected in September and October and reflects responses from 1,893 CFOs in 27 countries across a wide range of industries, including 54 in Ireland.