Two thirds of Europe's chief financial officers say their businesses are facing a high level of financial and economic uncertainty, according to a survey by professional services firm Deloitte.
The bi-annual survey gathers the opinions of more than 1,100 CFOs based in 17 different European countries.
Nearly 40% of the CFOs said the Brexit negotiations will have a negative effect on their business, with most expressing concern about the cost of additional regulation and any restriction in movement between countries.
As a result just a third of respondents expect their capital expenditure to increase over the next year, which is down on the same time a year ago.
Just 7% of UK CFOs said they expect to increase capital expenditure next year, but Irish CFOs are much more positive with 75% of CFOs planning an increase.
The survey also noted that just 16% of UK CFOs say they are more optimistic about their company's future performance, the lowest across all countries. The highest level of optimism was seen from Swedish CFOs (44%).
31% of Irish CFOs are more optimistic about their company's financial prospects, despite the Brexit uncertainty. 31% also reported that they were less optimistic and 38% thought there would be no change.
69% of Irish CFOs also said they expect their company's revenues to grow in the next 12 months, up from 63% in the first quarter of the year.
On employment, 32% of European CFOs say their company plans to increase the workforces over the coming year. CFOs in the UK are the least willing to hire new staff, with just 9% predicting increased headcount.
This compares to 62% of Irish CFOs who predict an increase in hiring, the highest across all countries.
