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Largest UK companies expect sales drop of over 20% due to coronavirus
4th May 2020 10:27
(Sharecast News) - The UK's largest companies expect the coronavirus to reduce their sales by over a fifth in 2020 according to a survey published on Monday by Deloitte.
The survey revealed the biggest drop in confidence since 2007 when data from the chief financial officers of the top 100 biggest companies in Britain was first collated.
"CFOs expect the lockdown to ease in May and June and demand in their own sectors to start recovering later this year. But there is no expectation of a quick snap-back in activity," Deloitte's chief economist, Ian Stewart, said.
The dramatic fall in confidence comes as the country is forced into lockdown to prevent the spread of Covid-19 that is hitting the world economy. Non-essential businesses have been closed since 23 March and restrictions are set to be reviewed this week.
Most CFOs do not expect revenues to return to pre-crisis levels for at least a year, Stewart said.
This year, CFOs on average expect sales to be 22% lower than they had forecast before the coronavirus hit Britain.
Official figures last week showed that a quarter of businesses of all sizes reported that their sales had more than halved due to the lockdown.
The Deloitte survey also showed that 59% of companies were using or planned to use a government job guarantee scheme that pays staff 80% of their wages.
The survey revealed the biggest drop in confidence since 2007 when data from the chief financial officers of the top 100 biggest companies in Britain was first collated.
"CFOs expect the lockdown to ease in May and June and demand in their own sectors to start recovering later this year. But there is no expectation of a quick snap-back in activity," Deloitte's chief economist, Ian Stewart, said.
The dramatic fall in confidence comes as the country is forced into lockdown to prevent the spread of Covid-19 that is hitting the world economy. Non-essential businesses have been closed since 23 March and restrictions are set to be reviewed this week.
Most CFOs do not expect revenues to return to pre-crisis levels for at least a year, Stewart said.
This year, CFOs on average expect sales to be 22% lower than they had forecast before the coronavirus hit Britain.
Official figures last week showed that a quarter of businesses of all sizes reported that their sales had more than halved due to the lockdown.
The Deloitte survey also showed that 59% of companies were using or planned to use a government job guarantee scheme that pays staff 80% of their wages.