Chief Financial Officers Are Bullish about the Economy for This Year

Article excerpt

CHIEF financial officers (CFO) of top Australian companies are bullish about the outlook for the domestic economy this year, a survey finds.

The Deloitte CFO survey for the December quarter says 76 per cent of CFOs surveyed predict revenues will increase this year.

It found 63 per cent expect operating cash flows to rise and 61 per cent predict a boost in capital expenditure.

Deloitte said the majority of the 63 CFOs who completed the survey, did so before Cyclone Yasi and the Queensland and Victorian floods.

The survey took place between December 9, last year and January 21 this year.

Deloitte chief operating officer Keith Skinner said the positive sentiment from the CFOs was clear.

aAlthough the majority of respondents completed this survey prior to the recent Queensland and Victorian flooding, there is little doubt that CFOs ended 2010 and begun 2011 in a positive frame of mind about the future for both their businesses and the wider economy,a Mr Skinner said yesterday.

The CFOs predictions fall in line with the Reserve Bank of Australia's (RBA) expectations for the Australian economy in 2011.

The RBA's quarterly statement on monetary policy, published on Friday, said the economy was expected to fully recover from the shock of the Queensland floods by the second half of the year as coal production in the state recovered. …