Spending Is on the rise and companies believe the availability of credit from all sources Is improving, according to the latest Deloitte CFO survey.
But despite the positivity, the men and women who control the finances of some of Ireland’s large private companies remain cautious about the overall state of play in the economy.
While they see unemployment falling and the recovery continuing, just over a half surveyed believe the Government should still plough ahead with plans for a €2bn adjustment in October’s Budget.
The headline figure in the survey is that 62pc of Irish CFOs feel more confident about the financial prospects for their company.
This is the highest level of optimism since the survey began five years ago and is up from the 50pc recorded in the first three months of the year.
“The positive sentiment expressed by CFOs is in line with the majority of respondents, who rated the level of external financial and economic uncertainty facing their business as low or normal,” said Shane Mohan, partner with Deloitte.
“CFOs reported that they are optimistic about their companies’ prospects mainly due to external factors – the biggest contributor to driving company performance, aside from industry specific demand, is economic growth both at home and abroad.”
The survey was carried out in June and July among CFOs working for large, listed private companies as well as subsidiaries of multinationals.
A large majority believe revenues will increase over the next year, while both capital and current expenditure is on the rise.
But costs remain a concern, particularly when it comes to hiring new staff.
Two out of three CFOs believe employee numbers will increase over the next 12 months.
However 70pc of CFO respondents believe that talent costs will impede their company’s performance over the next year, while 57pc believe talent availability will have a negative impact on performance.
Other key findings include:
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