Confidence in the business outlook among CEOs in Australia and New Zealand is higher than it has been in three years.
According to the latest Global Pulse Confidence Index from the Young President’s Organisation, the level of confidence has climbed to 63.3, increasing 6 points after two consecutive quarterly declines.
Tudor Marsden-Huggins of the YPO Queensland Chapter, said it will be interesting to see if this level of optimism remains steady as the new government’s honeymoon period comes to a close.
“Although investment in mining projects continues to decline, it’s hoped the combination of low interest rates, the recent fall of the Australian dollar, and the change of government following the election will result in a rise in non-mining investment in the region,” Marsden-Huggins said.
The Index, which surveyed over 2000 CEOs around the world, found that 71 per cent of local CEOs surveyed expect turnover to increase by at least 10 per cent over the next year, meaning improved hiring forecasts.
Almost half the CEOs said they believed business and economic conditions had improved over the past six months, compared to just 19 per cent last quarter. Almost 45 per cent expect conditions to continue to improve in the next few months.