Blow for graduate recruitment

Commenting on the findings, Phil Sheridan, managing director of financial recruiment agency Robert Half UK said: "The Robert Half CFO Confidence Index has thrown up some interesting results, not least that finance directors are clearly braced for the economic situation to get worse before it gets better.

"For graduates entering the marketplace, flexibility should be key to their approach.

"Temporary work can be a great option for graduates to gain valuable experience working in this kind of market.

"For employers, it's a tough balancing act between cutting back on graduate recruitment now and avoiding a talent shortage when the inevitable upturn comes."

Against a backdrop of all London-based CFOs questioned expressing greater concern about the UK economy's prospects now than 12 months ago, the survey found that overall the outlook for finance recruitment was mixed.

While a fairly grim outlook for graduates, those CFOs in the UK expecting some kind of decrease in their permanent staff over the next six months numbered 48 per cent.

But there are indications that companies have either made their cuts or are adopting a wait and see approach, a slim majority of 51 per cent predict staff numbers will remain constant.

The survey, conducted among CFOs from a range of companies of all sizes and in all sectors, revealed that the greatest concern is the impact that the uncertain economic outlook is having on their ability to forecast accurately.

Cited by 73 per cent of those questioned, this issue has leapfrogged up the table of concerns since the summer.

The shorter term issue of cash flow management retained its high place on the list of concerns, and although losing its top spot overall, it remains the No.1 concern for CFOs of small companies.