Oz to avoid recession, say CFOs

File photo / Mark Mitchell

The vast majority of chief financial officers believe Australia will avoid a recession even though the general climate of uncertainty is a major drain on already-low levels of business confidence, a survey shows.

Levels of optimism among chief financial officers (CFOs) sank 14 per cent in the June quarter from already-low levels, the Deloitte CFO survey shows.

More than three-quarters of CFOs surveyed believe Australia is facing above-normal levels of uncertainty.

CFOs nominated global economic uncertainty (35 per cent) and government policy uncertainty (36 per cent) as the major causes for their lack of optimism.

Carbon pricing and the strong Australian dollar were also identified as factors undermining confidence.

Deloitte chief executive Keith Skinner said that despite the apparent glum outlook, there were clear signs many CFOs expected the economic storm clouds to clear.

More than three-quarters of CFOs surveyed said there was less than a 50 per cent chance Australia's economy would contract in the next two years.

- AAP