M&A leaders in the financial services sector are cashed up, confident, and looking to double their deal volumes, despite squeezed margins, intense mortgage market competition, and rising funding costs. However, non-bank lenders' credit underperformance risk and the RBA's hiking cycle pose challenges.

The energy, resources, and industrials (ER&I) sector remains optimistic about the economic environment and its impact on M&A. Demand for sustainable fuel solutions is soaring, but our dependence on critical minerals to satisfy this demand presents challenges and opportunities within the sector.

The retail and consumer goods industry is facing the brunt of Australia's inflation fight. High interest rates and cost of living pressures are impacting household spending, leading to the lowest retail turnover per capita since September 2021. However, survey respondents from this sector maintain some optimism about economic conditions, with potential improvements expected in the second half of 2024.

The technology, media, and telecommunications (TMT) industry is experiencing a wave of innovation driving its growth. Digital transformation and the integration of generative AI and other productivity-boosting technologies are top priorities. While a weaker global outlook and higher interest rates have affected investment, organisations in the TMT sector are leveraging cross-border and opportunistic M&A until economic conditions improve.