CFO Sentiment | January – June 2016
Confidence on the rise in a sea of uncertainty
Australian CFOs provide views on how our current economic climate is effecting business investment and where Government need to ideally focus their efforts post-election to support business development and growth.
Welcome to the first edition of Deloitte’s new CFO Sentiment. We’ve refreshed our previous CFO Survey report in favour of a more engaging discussion about the issues that matter most to Australia’s most senior finance executives.
And what a time to have sought their views. Confidence among CFOs was on the rise again following a subdued response in Q3 2015, and yet feelings of uncertainty are at record highs. Importantly, that uncertainty was reported well before the result of the UK referendum on remaining in the EU, and far from providing certainty, the outcome has instead plunged the world into the unknown.
On the positive side, a fresh round of stimulus measures in China has eased some of the downward pressure on commodity markets, and iron ore prices have climbed out of the depths reached late in 2015. Moreover, interest rates remain a strong source of optimism, and more than 90% of CFOs expect them to remain at or below current levels in 12 months’ time.
However, uncertainty levels remain elevated – and 80% of CFOs believe that this is holding back business investment. This not only reflects the short term uncertainty associated with a federal election, but also longer term concerns. These include the complex economic circumstances being navigated by the world’s two largest economies, the risks posed by an effervescent domestic housing market and persistently low price growth across the economy.
Read about these and other issues that are on the minds of Australia’s leading CFOs in our CFO Sentiment report.