Australian chief financial officers have reported the highest level of optimism and greatest risk appetite since 2011, thanks to the recent change of government and an uptick in M&A and IPO activity.
Results of Deloitte’s latest quarterly CFO survey, released today, found 49% of CFOs more optimistic about their company’s future financial prospects than three months ago and 8% more pessimistic – up from a record low.
From the report:
Deloitte pinned previous months’ pessimism on political uncertainty under a minority Federal Government. Tony Abbott’s Coalition formed a majority government following the September 7 election.
“In Australia, uncertainty about Federal Government policy has been the biggest drag on sentiment over the past year,” the firm reported.
“The change of government in September has seen a dramatic turnaround, with 68% of CFOs now seeing government policy as a positive influence.
“Low interest rates and the falling Australian dollar also continued to be viewed positively, despite a jump in the dollar’s value during the survey period.
“However, the multispeed economy continued to weigh heavily on CFOs’ minds, though to a lesser extent than previous quarters.”
Thirty-eight percent of CFOs in Deloitte’s most recent survey said now was a good time to take more risk onto their balance sheet, and a majority expected revenue to increase in the next 12 months.
Just under half said they would increase their focus on mergers and acquisitions, while two-thirds were planning to introduce new products and service, or enter new markets.
There’s more in Deloitte’s report.
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