Double dip recession fears have been mounting among finance chiefs, with many predicting that the UK economy is set to slide.

In a recent survey, Deloitte discovered that chief financial officers are feeling less optimistic about the UK’s economic standing in the second quarter of 2010 than they were in the first.

The percentage was the lowest in 12 months as the prospect of a double dip recession becomes more real – with 38 per cent of CFOs predicting it as a possibility.

The survey, which included finance directors from 32 FTSE 100 companies and 93 UK companies, accounting for 28 per cent of the equity market, showed the net percentage of those who were more optimistic had dropped from 40 per cent to 24 per cent.

Budget cuts and tax rises have added to the pressures felt by the financial services industry, leading more to believe that Britain’s recovery is in danger of a setback.

And according to the survey, two in every three think the squeeze will have a negative effect on their company and almost seven in every 10 think they will see few or no direct long-term benefits.

Ian Stewart, Deloitte’s chief economist, said: “The survey paints a picture of concern about growth coupled with improvements in the corporate credit and liquidity environment. With fears of a double dip increasing, chief financial officers are maintaining a strong focus on costs.”

Last week’s turbulence in the markets and pressures from the EU and US have added to the industries fears and traders are now concerned that this week will bring additional volatility to the markets.

© Fair Investment Company Ltd