More executives see brighter outlook and are ready to hire
Conducted during February and March, the global survey found improving confidence across most economic measures, and suggested that an increasing number of Australian companies are looking to hire workers in the year ahead.
Despite hundreds of local jobs being cut recently by the likes of Holden, Rio Tinto and other big corporates, the number of Australian executives that planned to hire new staff more than doubled since the October survey to reach 44 per cent. Only 8 per cent of those surveyed planned further job cuts over the next year.
The October survey found just 22 per cent of respondents believed the global economy was improving, but by this month that number had recovered to 57 per cent. The number who felt the global economy was deteriorating more than halved over the same period to be just 11 per cent in the most recent survey.
The sourcing of finance also seems to be becoming easier than it was in late last year when fears about the health of the Chinese economy was freezing capital markets. The number of Australian respondents who believed they could source "deal financing" should they require it almost tripled from just 19 per cent in October to 56 per cent in the recent survey.
Well over 70 per cent of respondents expect deal flow to improve over the next year, but the vast majority of those believe the improvement will only be modest.
The majority of executives that responded to the survey worked for publicly listed companies with annual revenues in excess of $US1 billion, and the best represented sectors were mining and metals, financial services and consumer products.
Frequently Asked Questions about this Article…
Ernst & Young’s global survey of about 1,600 executives (conducted in February and March) found a marked improvement in executive confidence. The share who believed the global economy was improving rose from 22% in October to 57%, while those who thought it was deteriorating fell to 11%.
The survey found Australian executives planning to hire more than doubled since October, reaching 44% who expect to hire new staff in the year ahead. By contrast, only 8% said they planned further job cuts.
Yes. The number of Australian respondents who believed they could source 'deal financing' if required almost tripled — from 19% in October to 56% in the recent survey — indicating executives see finance as more available than late last year.
Well over 70% of respondents expect deal flow to improve over the next year. However, the survey notes that the majority of those executives expect only modest improvements in deal activity rather than a dramatic uptick.
Most respondents worked for publicly listed companies with annual revenues exceeding US$1 billion. The best‑represented sectors were mining and metals, financial services, and consumer products.
Improved executive confidence and greater willingness to hire or pursue deals can be a positive signal for the economy and corporate activity. That said, the survey also signals expectations of only modest improvements, so investors may want to weigh this optimism alongside other economic indicators.
Not necessarily. The article notes recent job cuts at firms such as Holden and Rio Tinto, but despite those cuts the survey still found hiring intentions among Australian executives rose to 44% and only 8% planned further job cuts, showing improving sentiment across the broader corporate sector.
The survey was conducted by accounting firm Ernst & Young during February and March and included about 1,600 top executives globally.
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