BUSINESS optimism among finance chiefs has plunged to its lowest level on record in the wake of the UK's decision to quit the European Union.
A survey by consultancy giant Deloitte shows that 73 per cent of chief financial officers (CFO) are less optimistic about the prospects for their company following the referendum result, up from 32 per cent in the first quarter of the year.
The figure is the highest level registered since Deloitte's survey began in 2007 and higher than during the collapse of Lehman Brothers in 2008.
As a result, business bosses will put the brakes on hiring and rein in capital spending in the expectation that revenues will plummet.
David Sproul, senior partner and chief executive of Deloitte, said: "The outcome of the EU referendum has triggered a sharp, negative response from the corporate sector. This survey was conducted immediately after the referendum, against a backdrop of historical political upheaval and financial uncertainty.
"The faster-than-expected appointment of a new prime minister removes one source of uncertainty, now the Government must set out its vision for the UK's future relationship with the EU to provide further stability and reassurance."
The survey also revealed that 83 per cent of CFOs expect a slowdown in hiring over the next year, the highest number recorded and up significantly from 29 per cent in the first quarter.
The proportion forecasting a cut in discretionary spending (82 per cent) is the highest since 2011.
To counter the negative effects of the referendum result, 91 per cent of CFOs are urging the government to send a "strong signal" about its aims in negotiations with the EU. A total of 88 per cent also said that maintaining the solvency and liquidity of the banking system is "essential", while 25 per cent want the government to continue with a deficit reduction plan.
