Corporate risk appetite in UK has grown post-election, Deloitte says

British companies' appetite for risk has increased since the country's election in May, a survey of finance directors commissioned by global audit and consulting group Deloitte showed on Monday.

The survey, conducted in June, found 59% of the 122 CFOs at private and publicly-listed British firms surveyed opining it was a good time to take risk, up from a two-year low of 51% before the election.

“Risk appetite is on the rise, uncertainty has fallen and CFOs enter the second half of the year in expansionary mode. Our survey suggests the UK recovery is regaining momentum,” Deloitte chief economist Ian Stewart said.

The survey also explored the companies' sentiment towards the UK membership to the European Union (EU), and found 74% of those surveyed supported a continued EU membership, emphasising the benefits to export businesses, inward investment and free movement of workers.

Nevertheless, 23% of them said their view on membership would depend on the outcome of the UK’s renegotiation on issues like welfare and immigration, while 2% showed their support for a Brexit.

Read more: UK referendum on EU membership could come before end of 2017

they see opportunities to establish a more advantageous relationship for the UK

“While there is a clear desire among CFOs for the UK to remain a member of the EU, there can be little doubt that they see opportunities to establish a more advantageous relationship for the UK.” Deloitte's UK chief executive David Sproul said.

The study also found that interest rate rises and Euro area weakness were at the top of the CFOs’ concerns.

It also highlighted instability in the Eurozone and the possibility of tightening monetary policy in Britain and the United States as the greatest challenges facing businesses.

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