Australia’s weak economic outlook continues to weigh on corporate CFO sentiment, but could improve over 2024 as conditions stabilise, supported by strong population growth and easing inflation.
When last surveyed just over six months ago, CFOs appeared to be in two minds. Optimism around business performance was holding, but confidence about the economy was already low – now, however, pessimism is now seeping into expectations about their own business performance.
Positively, optimists still outnumber pessimists, but net optimism on business performance has fallen, a lower rate than at the start of the pandemic.
The outlook for many key business metrics still remains in positive territory. On balance, CFOs still expect capital expenditure, employment and revenue to increase in FY24, although expectations have weakened somewhat, and they are turning their attention to cost control as a top priority to manage any bottom line the impacts.
Other key CFO Sentiment findings include:
The survey report also again looks at ESG considerations for CFOs as well as their climate priorities and challenges.