Net confidence among CFOs plunged to -57% in the second half of March 2026, a dramatic drop from -13% in the previous quarter and the lowest reading in six years. The survey was conducted between March 16 and 30, 2026. Geopolitical developments remain the single greatest external risk to UK businesses for the third consecutive year, with a weighted average risk rating of 79 this quarter, up sharply from 65 in the previous survey.
Higher energy prices or disruption to supplies jumped to a risk rating of 70 from 47, while worries over further interest rate rises rose to 65 from 44. When asked about the consequences of adverse geopolitical developments over the next three years, CFOs' top concerns were rising energy costs and inflation and interest rates, both at 61%, and an increase in cyber-attacks at 60%, up from 44% a year earlier. The conflict in the Middle East has reshaped corporate sentiment almost overnight.
Cost control has become the overriding priority for UK companies, with 68% of CFOs rating it a 'strong priority' for the next 12 months, up from 51% last quarter. Cash conservation also rose in importance, cited by 43% of CFOs, up from 36%. Expectations for spending and hiring have deteriorated.
It is unknown how this confidence level compares to other economic crises beyond COVID-19 or how different sectors such as manufacturing and services are affected by the drop.