Businesses to stay thrifty

Big Australian businesses are set to shy away from large investments or aggressive expansions, despite growing confidence in the Australian economy.

A global survey of chief financial officers (CFOs) found a 20% decrease in plans by Australian companies to aggressively expand in 2015.

The American Express/CFO Research Global Business and Spending Monitor found Australia is the second-most reluctant market in Asia Pacific, despite local CFOs reporting strong revenues, export expansion and company growth.

With 63 per cent of Australian big businesses inclined to spend the same as last year and 23 per cent intending to keep spending tightly monitored, only a small minority of companies plan on expanding their expenditure.

Christine Wakefield, American Express Global Corporate Payments Vice President, says: “At a time when the Government is looking to big business to help drive the economy forward, this research shows more needs to be done to give CFOs the confidence to spend,” says Wakefield.

“Companies are looking for ways to do more with less and stretch every dollar further.”

For the full report, click here.