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Deloitte: Australian CFOs get ready to shift gears

By Rob Starr, Content Manager,

A third of Chief Financial Officers (CFOs) are more optimistic compared to last quarter according to the latest Deloitte Quarterly CFO Survey.

With two cuts to the official cash rate in the fourth quarter, over half (56%) of the respondents identified falling interest rates as having a positive impact on their levels of optimism. This also enhanced the attractiveness of bank borrowing, with 23% of CFOs saying that the cost of credit was cheap or very cheap. Almost two thirds (63%) of respondents expect the RBAs official cash rate to continue to fall below the current rate.

Deloitte Chief Operating Officer, Keith Skinner comments:

“A solid 70% of CFOs expect to see positive revenue growth in the coming year and 63% expect an increase in cash-flow over the same period. These two key indicators have been steadily increasing over the past two quarters.As the spike in heavy mining investment fades and the sector turns to the less capital intensive output phase, there will be more opportunities for the other 80% of the economy to take a greater share of investment dollars,” he said.

Although 79% of CFOs have some sort of productivity measure in place, around one in five (21%) of them fail to track this key efficiency and competitiveness indicator. When it comes to improving productivity the most popular areas of focus for CFOs was to increase their revenue from existing customers (85%), move into new markets or acquire new customers (75%), and invest in training and development of employees (72%).

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