UK companies, worried about domestic political uncertainty and a weakening eurozone, are growing more uneasy as the May general election approaches, according to a quarterly survey of chief finance officers conducted by Deloitte.
āThe decline in support for the three main parties, and the rise in support for others, means the risk of political instability and the possibility of more radical policy changes is greater than before,ā Ian Stewart, Deloitteās chief economist, was quoted as saying by the UK Guardian. āIn the past, CFOs had been more concerned with increased financial and economic uncertainty, but theyāre now latching onto the more uncertain domestic political landscape.ā
Analysts are concerned over the possibility of a hung parliament, which could lead to a second election before the end of 2015. CFOs surveyed by Deloitte between Nov. 27 and Dec. 15 also expressed increasing concern over the weak eurozone and the prospect of the UK leaving the EU. However, companies did show more confidence in the UK economy, predicting wages will increase on average by 2.9 percent this year.
Representing manufacturers, the EEF also conducted a quarterly survey and found that 40 percent of those surveyed are predicting that the global economy will worsen in 2015, up from 5 percent at the start of 2014. Factories worry that political tension abroad will impact demand for the year. They arenāt anticipating much new business growth from Europe or the Middle East.
