CFO Sentiment Report | Edition 18
Balancing confidence and caution
CFO Sentiment offers a compelling view of Australia’s business landscape through the eyes of its financial leaders.
The 18th edition of CFO Sentiment tells a tale of cautious optimism: finance leaders anticipate a better year ahead, but remain guarded in case the economic environment changes.
Our latest survey of Australian chief financial officers (CFOs) shows 71% feel optimistic or highly optimistic about their company’s financial prospects, up from 66% six months ago.
Net optimism about the economy has also increased by 12 percentage points, reaching its first positive reading (5%) since we introduced this metric in late 2022.
The results encouragingly build on our mid-year survey, which uncovered a rise in CFO confidence for the first time in three years.
But CFOs aren’t out of the woods. Uncertainty remains high and risk appetite low, even if slightly improved from six months ago. CFOs continue to prioritise cost control as they manage a range of internal and external risks, balance the challenges and opportunities of generative AI, and prepare for the phasing in of mandatory sustainability reporting from early 2025.
Explore highlights from this edition below, and download the full report for detailed insights and analysis.
Net optimism about the economy has risen by 12 percentage points, reaching the first positive reading (5%) since first measured in late 2022. However, respondents are more optimistic about their own business prospects than the overall economy, reflecting ongoing uncertainties for the year ahead.
Net uncertainty remains high at 79%, while 26% of CFOs believe now is a good time to take on risk, up from 23% six months ago. This suggests that despite the challenges, CFOs are becoming more resilient and better equipped to handle the 'new normal' of high uncertainty.
Nearly one in two CFOs (47%) say GenAI is substantially transforming their finance function or will do so within two years, up from 33%. However, only 30% have seen this translate into adoption as they manage competing priorities, talent resources and other challenges.
CFOs increasingly recognise ESG as a strategic imperative across the full business, not just in isolated pockets. Nearly four in five (79%) say their company is taking at least three ESG actions out of nine proposed, with the above responses ranking in the top three.
