• Following consecutive quarters of impressive optimism, the number of CFOs feeling more optimistic this quarter has fallen sharply. Net 5% of CFOs report that confidence levels have increased in Q3 2015.
• Record low interest rates and a more favourable exchange rate continue to support CFO optimism, while Federal Government policy is a net positive influence for the first time since Q1 2014.
• There were some major shifts in the influence of foreign economies. China’s economy is now a clear source of concern, with 68% of CFOs stating that it had hurt confidence; while the net impact of the European economy is now contributing positively to confidence.
• Credit conditions remain strong, though attitudes toward risk have shifted. Fewer CFOs are now willing to take on risk, and the number of respondents looking to raise gearing levels has also fallen away.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
• Following consecutive quarters of impressive optimism, the number of CFOs feeling more optimistic this quarter has fallen sharply. Net 5% of CFOs report that confidence levels have increased in Q3 2015.
