Turnbull Govt gives some hope

Deloitte federal government confidence

4 November 2015
| By Jassmyn |
image
image
expand image

The country's change in leadership and low interest rates has helped Australian chief financial officers' (CFOs) confidence despite concerns over China, according to Deloitte.

Deloitte's CFO Survey, covering Q3 2015, found Federal Government policy was a net positive influence for the first time since Q1 2014.

Deloitte managing partner in Sydney, Dennis Krallis, said the positive trend in terms of greater optimism since the beginning of the year had slowed.

"But it's important to note that there are also confidence boosters. Low interest rates, a weak dollar, and the change in leadership in Canberra, with the widely held perception that the new-look government is more open to tax reform and innovative policy, have all helped to temper the China impact," he said.

"These local forces shouldn't be underestimated, and we believe it will take time for their true positive potential on confidence to be realised."

The survey found net five per cent of CFOs reported that confidence levels had increased, back to levels expressed during 2014 and a low result compared to 24 per cent in Q2 and 21 per cent in Q1.

"Local and global uncertainty hadn't been a particularly strong influence on CFO optimism in the first half of the year, but news regarding slower growth coming out of China, and its scale and relevance to Australia, now appears to be hitting a nerve," Krallis said.

"Net 68 per cent of CFOs reported that news from China was a negative influence on optimism, the most downcast response since early 2013, when China had released its worst growth figures in nearly 15 years."

Krallis noted that while a significant majority of CFOs anticipate current concerns will ease within two years, 18 per cent believe it will persist indefinitely.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

1 month 3 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 months ago

Interesting. Would be good to know the details of the StrategyOne deal....

2 months ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

2 weeks 2 days ago

Original bidder Bain Capital, which saw its first offer rejected in December, has returned with a revised bid for Insignia Financial....

1 week 2 days ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

1 week ago

TOP PERFORMING FUNDS