Health and Healthcare Systems

Big UK businesses predict a slow economic recovery

The sun rises above Tower Bridge as commuters walk across London Bridge during rush hour in London, Britain, February 26, 2020. REUTERS/Hannah McKay - RC298F9IK7SI

49% of CFOs from UK companies forecasted a return to pre-pandemic levels of business in 2021. Image: REUTERS/Hannah McKay

Andy Bruce
Reporter , Reuters
  • A survey by Deloitte with over 100 Chief Financial Officers from large British companies highlights a common pessimistic economic outlook for pandemic recovery.
  • Around 49% of CFOs from large UK companies forecast a return to pre-pandemic levels of business only in the second half of 2021.
  • “Major corporates are expecting a long haul back to pre-COVID levels of revenue,” said Deloitte’s chief economist.

Nearly half of Britain’s biggest companies think it will take until the second half of 2021 before business recovers from the coronavirus pandemic, according to a survey on Monday that cast doubt on hopes for a speedier rebound.

coronavirus pandemic economy stocks market exchange shares bonds trading commission volatility health disease infection finance
People look out onto the Canary Wharf financial district as they stand at a viewing area in Greenwich Park in London Image: REUTERS/Simon Dawson

Accountants Deloitte said 49% of chief financial officers from large and mostly listed companies forecast a return to pre-pandemic levels of business only in the latter half of next year.

Another 33% predicted a recovery in the first half of 2021 and 10% said business had already bounced back.

Have you read?

The survey chimed with other gauges of business sentiment, such as the Bank of England’s Decision Makers’ Panel, which show companies expect a lasting hit from the virus outbreak that has killed more than 45,000 people in the United Kingdom.

Deloitte said companies were resolutely downbeat about the outlook for jobs, investment and adding risk to their balance sheet, although less so than in its previous quarterly survey.

“Major corporates are expecting a long haul back to pre-COVID levels of revenue,” said Ian Stewart, Deloitte’s chief economist.

coronavirus work pandemic from home remote productivity interruptions focus efficiency task job employment career
Most CFOs seem prepared for a longer road to recovery. Image: Refinitiv Datastream/Deloitte CFO Survey

Separately, manufacturing trade body Make UK on Monday called for the government to extend its job furlough scheme, due to expire at the end of October, by six months for key industrial sectors.

Its latest survey showed 53% of manufacturers are planning to make redundancies, up from 42% previously.

“At present, the prospect of a V-shaped recovery for industry seems remote,” said Stephen Phipson, Make UK chief executive.

A Bank of England scenario published in May showed the economy regaining its pre-pandemic size by the second half of next year, but evidence for the kind of “V”-shaped recovery that would be needed is patchy.

The economy could shrink by more than 14% this year if there is lasting damage from the coronavirus.

BoE Governor Andrew Bailey said on Friday that Britain’s economy was starting to recover from its coronavirus lockdown but some job-intense sectors remained weak and the longer-term outlook was unclear.

The Deloitte survey of 109 chief financial officers from companies took place between June 26 and July 8.

Loading...
Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

United Kingdom

Related topics:
Health and Healthcare SystemsJobs and the Future of WorkEconomic Growth
Share:
The Big Picture
Explore and monitor how United Kingdom is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

A historic leap in cancer vaccines – here’s what you need to know

Michelle Meineke

November 22, 2024

The key health achievements of COP29, and other top health stories

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum