Latest news with #economicoptimism
The Australian
07-07-2025
- Business
- The Australian
Australian CFO economic optimism rises while business confidence falls
Chief financial officers at some of Australia's largest companies are feeling more bullish about the domestic economy than they have in years. But at the same time, confidence in their own organisation's performance has fallen. That's according to the latest edition of Deloitte's biannual CFO Sentiment report. Based on a survey of more than 60 CFOs, it found that the share of respondents feeling optimistic about the economy has nearly doubled in just six months. This has driven net optimism in the economy to its highest level (23 per cent) since the end of 2022, when the series began tracking economic sentiment. In that same period, net optimism about business prospects has fallen 16 percentage points to 49 per cent in H1 2025. If that seems counterintuitive, you would be right. Sentiment about the Australian economy and business performance have always marched in lockstep — until now. When business leaders are feeling bullish about the economy, they almost always feel more optimistic about their organisation's prospects. What's different this time, and what does it mean? It all comes down to one word: uncertainty. Deloitte's report shows net uncertainty among CFOs has surged 13 percentage points to 92 per cent, its highest level in over two years. This has a corresponding effect on the willingness of businesses to take on risk. Although buoyed slightly by stronger economic conditions, CFOs do not currently have much appetite for risk. With lower risk appetite comes lower investment, and with lower investment can come weaker business performance. When it comes to what is causing uncertainty, the elephant in the room is, of course, the US administration's will-they-won't-they approach to tariffs and trade negotiations. Most CFOs (84 per cent) believe recent changes in global tariffs will have a negative impact on the Australian economy. Stephen Gustafson is CFO Program Leader at Deloitte Australia David Rumbens is a partner at Deloitte Access Economics However, far fewer believe that these tariffs will negatively impact their own business, and most CFOs are delaying concrete actions in response to them. Additionally, the collective growth in overall economic optimism implies that the surveyed CFOs do not foresee changes to tariff policy having a large impact on the Australian economy. That means there are other factors causing uncertainty. The financial conditions of many businesses remain challenging, with compressed margins and weak profitability continuing to weigh on business outcomes, despite an ostensibly improving economy. While the economy is doing better than it was, that does not mean that it's yet in fantastic health. Yes, interest rates and inflation are both coming down from recent highs, but the economy continues to grow slowly and has spent eight of the past nine quarters going backwards in terms of GDP per-capita. Meanwhile, household spending remains subdued as Australians get over the cost-of-living crisis and look to rebuild their savings. This is making conditions tough for business, with margins compressed and profits low. While input costs have stabilised, many businesses are reluctant to pass on further price increases to consumers already grappling with affordability concerns. So, while the economy is strengthening, it is uncertain as to what extent business conditions will improve too. This is perhaps why competition, pricing and costs, taken collectively, is the most common perceived external risk to the respondent CFOs' businesses. Looking to the year ahead, a greater share of CFOs expect a fall in profit margins (28 per cent of respondents) and employment (39 per cent) than recorded six months ago. This indicates businesses may be looking to right-size their workforce in response to challenging conditions. However, it's not all bad news: nearly one in two CFOs (48 per cent) expect capital expenditure to increase over the next 12 months, up from 35 per cent six months ago, indicating many businesses are planning for the long-term by expanding their capacity. Boosting productivity is one of the clear solutions to the low-growth holding pattern many businesses – and the Australian economy at large — are currently trapped in. The recently re-elected federal government has made productivity a focus area, with a productivity summit scheduled for later this year. Some productivity-enhancing reforms combined with rising capital investment and falling interest rates could help business confidence lift over the next 12 months. These factors are reasonably in our control. The ebb and flow of global trade policy, however, is not, and this — alongside emergent global conflicts — will likely contribute to a persistent level of uncertainty over the coming year. But given it's been over five years since net uncertainty fell below 75 per cent, Australian CFOs are not in unfamiliar territory. Stephen Gustafson is CFO Program Leader at Deloitte Australia. David Rumbens is a partner at Deloitte Access Economics. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see to learn more. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
Yahoo
03-07-2025
- Business
- Yahoo
Moderna (NasdaqGS:MRNA) Joins Russell Midcap Indices In Late June 2025
In late June 2025, Moderna underwent significant index changes, adding to the Russell Midcap indices while exiting the Russell Top 200 indices. This reclassification might have signaled a shift in investor perception, aligning with the company's 18% share price increase over the last quarter. Despite the broader market experiencing a rally with indexes like the S&P 500 and Nasdaq reaching record highs, Moderna's earnings report, strategic alliances, and product-related updates added weight to its price movement. These developments occurred against a backdrop of economic optimism, with strong job growth boosting market sentiment. Buy, Hold or Sell Moderna? View our complete analysis and fair value estimate and you decide. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The recent index reclassification of Moderna into the Russell Midcap indices and removal from the Russell Top 200 indicates a shift in investor perception, possibly affecting long-term investor strategies. Despite a recent 18% share price increase over the past quarter coinciding with broader market highs, Moderna's five-year total return was a 50.83% decline. This underperformance relative to industry peers indicates the challenges Moderna faces, including decreased revenues and high costs impacting profitability. The news and developments around Moderna's strategic alliances and product updates could potentially bolster future revenue through international market expansion and oncology advancements. Analysts expect revenue growth driven by new product approvals, yet the company's earnings are still forecast to remain negative in the near term. Current share price movements reflect some investor optimism, trading below the consensus price target of US$47.59, suggesting room for growth, provided the company meets these expectations. Unlock comprehensive insights into our analysis of Moderna stock in this financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:MRNA. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data
Zawya
30-06-2025
- Business
- Zawya
UK business confidence levels hit highest since 2015, Lloyds says
LONDON: Confidence levels among British employers hit a fresh nine-year high this month as companies became more optimistic about the outlook for the economy, according to a survey published on Monday. The Lloyds Bank Business Barometer rose by one point to 51%, the highest since November 2015, adding to an 11-point jump in May following a tumble in April when U.S. President Donald Trump announced a big jump in import tariffs, many of which have since been suspended. The survey's measure of economic optimism touched a 10-month high, rising by a point after a 16-point increase in May. Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said a rise in hiring intentions - with 60% of firms expecting higher staffing levels in the coming year - suggested employers were starting to prepare for future growth. The Bank of England is watching Britain's jobs market closely as it tries to gauge how much inflation pressure remains in the economy. Governor Andrew Bailey said last week that he saw signs of a slowdown in the labour market, due in part to the government's tax increase for employers, which began in April. But the Lloyds survey showed wage growth expectations rose for a second month in a row, with 36% of respondents forecasting average pay increases of 3% or more. Separate figures published by jobs website Adzuna showed UK staff vacancies edged down in May from April but rose by 0.5% compared with May last year, the third such increase in a row after more than a year of falls. "May reinforced the sense that the job market in the UK is gradually regaining its footing," said Andrew Hunter, co-founder of Adzuna. The Confederation of British Industry (CBI) said its gauge of expectations among businesses about the economy over the next three months were less negative than in May but remained weak after the tax increase on employers and geopolitical upheaval. "Companies are still grappling with higher employment costs, cautious spending behaviour on the part of households and increasing global uncertainty," said Alpesh Paleja, the CBI's deputy chief economist. (Writing by William Schomberg; Editing by Helen Popper )
Yahoo
30-06-2025
- Business
- Yahoo
UK business confidence levels hit highest since 2015, Lloyds says
LONDON (Reuters) -Confidence levels among British employers hit a fresh nine-year high this month as companies became more optimistic about the outlook for the economy, according to a survey published on Monday. The Lloyds Bank Business Barometer rose by one point to 51%, the highest since November 2015, adding to an 11-point jump in May following a tumble in April when U.S. President Donald Trump announced a big jump in import tariffs, many of which have since been suspended. The survey's measure of economic optimism touched a 10-month high, rising by a point after a 16-point increase in May. Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said a rise in hiring intentions - with 60% of firms expecting higher staffing levels in the coming year - suggested employers were starting to prepare for future growth. The Bank of England is watching Britain's jobs market closely as it tries to gauge how much inflation pressure remains in the economy. Governor Andrew Bailey said last week that he saw signs of a slowdown in the labour market, due in part to the government's tax increase for employers, which began in April. But the Lloyds survey showed wage growth expectations rose for a second month in a row, with 36% of respondents forecasting average pay increases of 3% or more. Separate figures published by jobs website Adzuna showed UK staff vacancies edged down in May from April but rose by 0.5% compared with May last year, the third such increase in a row after more than a year of falls. "May reinforced the sense that the job market in the UK is gradually regaining its footing," said Andrew Hunter, co-founder of Adzuna. The Confederation of British Industry (CBI) said its gauge of expectations among businesses about the economy over the next three months were less negative than in May but remained weak after the tax increase on employers and geopolitical upheaval. "Companies are still grappling with higher employment costs, cautious spending behaviour on the part of households and increasing global uncertainty," said Alpesh Paleja, the CBI's deputy chief economist. (Writing by William Schomberg;Editing by Helen Popper) Sign in to access your portfolio
Yahoo
29-06-2025
- Business
- Yahoo
UK business confidence levels hit highest since 2015, Lloyds says
LONDON (Reuters) -Confidence levels among British employers hit a fresh nine-year high this month as companies became more optimistic about the outlook for the economy, according to a survey published on Monday. The Lloyds Bank Business Barometer rose by one point to 51%, the highest since November 2015, adding to an 11-point jump in May following a tumble in April when U.S. President Donald Trump announced a big jump in import tariffs, many of which have since been suspended. The survey's measure of economic optimism touched a 10-month high, rising by a point after a 16-point increase in May. Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said a rise in hiring intentions - with 60% of firms expecting higher staffing levels in the coming year - suggested employers were starting to prepare for future growth. The Bank of England is watching Britain's jobs market closely as it tries to gauge how much inflation pressure remains in the economy. Governor Andrew Bailey said last week that he saw signs of a slowdown in the labour market, due in part to the government's tax increase for employers, which began in April. But the Lloyds survey showed wage growth expectations rose for a second month in a row, with 36% of respondents forecasting average pay increases of 3% or more. Separate figures published by jobs website Adzuna showed UK staff vacancies edged down in May from April but rose by 0.5% compared with May last year, the third such increase in a row after more than a year of falls. "May reinforced the sense that the job market in the UK is gradually regaining its footing," said Andrew Hunter, co-founder of Adzuna. The Confederation of British Industry (CBI) said its gauge of expectations among businesses about the economy over the next three months were less negative than in May but remained weak after the tax increase on employers and geopolitical upheaval. "Companies are still grappling with higher employment costs, cautious spending behaviour on the part of households and increasing global uncertainty," said Alpesh Paleja, the CBI's deputy chief economist. (Writing by William Schomberg;Editing by Helen Popper) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
