CEO confidence on the rise
Confidence among chief executives has risen to its highest level since mid-2018 after a period of weakness, although concerns still linger about future economic performance.
According to CEO network The Executive Connection, confidence rose from 97 points in the second quarter of 2019 to 113. A score above 100 was seen as positive.
Expectations of the economy for the year ahead rose 27 points to 107 and economic performance compared to a year ago rose from a three-year low of 81 points to 84, remaining in negative territory.
When asked about property markets, 35 per cent of CEOs surveyed said they felt further house price falls were on the cards and 45 per cent said they expected prices would remain steady.
Investment intentions and hiring plans saw a drop but remained in positive territory and many expected to either expand their workforce or increase capital expenditure in the 12 months ahead.
Flexible working remained a key concern when it came to hiring new staff with nearly of employers offering this arrangement as an incentive.
Warren Hogan, chief economic adviser at The Executive Connection and industry professor at UTS Business School, said: “Business confidence has reversed the slide evident since mid-2018. Following the Federal election, business leaders’ confidence is being buoyed by the recent reduction in interest rates, strong equity markets and some better signals emerging in the housing market. Combined with the income tax cuts due in months ahead, we could well be at the turning point for the Australian economy.”
AUTHOR
Laura Dew
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