Powered by MOMENTUM MEDIA
subscribe to our newsletter

Business confidence registers ‘very significant improvement’

Chief financial officers have become more optimistic about the prospects of their companies, according to the latest Deloitte CFO survey.

Conducted over the first quarter of 2015, the survey showed that a net 21 per cent of CFOs have a more positive attitude about the prospects of their companies.

That compared to a net result of six per cent from the previous quarter.

The survey also found that 51 per cent believe that now is a good time to take on financial risk – up 24 percentage points from the previous quarter.

Gearing intentions increased from a net result of -17 per cent last quarter to a net result of +15 per cent this quarter.

Advertisement
Advertisement

Deloitte assurance and advisory partner Stephen Gustafson said that while CFO optimism hasn’t reached the levels of a year ago, it’s a “very significant improvement on what was a subdued mood for much of 2014”.

“While risk aversion and an overall sense of caution had been recurring themes for much of 2014, net optimism has grown since, from six per cent in the fourth quarter of last year to 21 per cent in the first quarter of 2015,” he said.

Mr Gustafson noted that though the lower Australian dollar and interest rates have driven a rise in CFO confidence, concerns remain around federal government policy.

“Policy uncertainty, budget repair, leadership instability and hesitation regarding the reform agenda continue to have an impact on business confidence, and were a negative factor for net 55 per cent of CFOs,” he said.

Despite this, Mr Gustafson said it hasn’t overly dampened business spirits.

PROMOTED CONTENT


“This again suggests that Australia may have arrived at an economic tipping point where, despite this uncertainty, underlying conditions are positive enough that CFOs are willing to take on risk and invest in growth,” he said.

Business confidence registers ‘very significant improvement’
mortgagebusiness

Latest News

ASIC has slapped the big four bank with a lawsuit claiming it breached the Credit Act, over referrals through its home loan “introducer pr...

Overdue mortgage debt has travelled downwards for the fourth month in a row, according to a new report by the credit ratings agency. ...

The property market boom has boosted the home loan businesses of Australian mutual banks, according to a new analysis. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.