CFO Sentiment | Edition 2
Facing uncertainty with confidence
2016 was arguably the year where uncertainty became the norm rather than the exception – think the outcome of the July Federal election, Great Britain’s decision to leave the European Union and Donald Trump’s ascendancy to the most influential role in world politics.
What did Australia’s CFO community make of these events and the environment in which they operate?
At a high level, our CFOs are happy, but cautious. 2016, although dominated by big global and local, political and economic headlines, was arguably the year where uncertainty really became the norm rather than the exception.
But CFO confidence, while slightly more subdued compared to the first half of 2016, was still net positive. In fact net positive sentiment has now entered its fourth consecutive year, and for the first time since the beginning of the survey in 2009, all measured domestic contributors to CFO optimism are net positive.
Despite rising uncertainty and having to manage through uncertain times, confidence among CFOs is holding strong. So, what is the overall sentiment of Australia’s leading senior finance executives?
- A net 20% are more optimistic than they were when last surveyed
- 78% feel there are above normal levels of external financial and economic risks facing their companies
- 24% believe that government’s responses to economic uncertainty will be pivotal for the future of their companies
- 42% expect interest rates to rise within the next 12 months
- 33% believe President Trump isn’t a problem yet… but are keeping an eye out for negative impacts over the longer term.
CFO Sentiment | Facing uncertainty with confidence
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