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Business confidence resilient in face of economic uncertainty

Despite global financial volatility, local businesses are feeling optimistic as they look towards implementing more efficient cost-cutting measures.

Australian business confidence has remained stable at 114 index points since September last year, according to the latest Regus Business Confidence Index.

The global survey also revealed 59 percent of local businesses increased their revenues in the past 6 months. Buoyed by this positive growth, more than a third believe economic recovery will pick up in the second half of the year, and 75 percent expect revenues to rise in the next year.

Despite the anticipated recovery, businesses remain aware of the need to contain costs in the face of economic uncertainty. As they look towards the year ahead, Aussie businesses are seeking to implement more effective cost-cutting measures.

When surveyed on how they could effectively reduce costs, 43 percent of businesses identified the increased use of pay-as-you-go services.

The use of cloud IT applications and shorter supply chains were also identified as important measures that would help businesses to save on costs without damaging growth prospects.

The index findings added that a wider distribution of customers and more flexible working conditions for staff would make the most significant contribution to future business stability.

“With the Australian Bureau of Statistics reporting a dip in business spending and a slowdown in household spending, it is not surprising that Australian businesses are seeking to rely on more flexible working practices to help manage productivity,” Regus CEO Asia-Pacific Filippo Sarti explained

“Given the variety of solutions readily available on the market for flexible workspace arrangements, such as pay-as-you-go business services, there is no doubt that the number of businesses benefiting from more agile and scalable arrangements will increase in the coming years,” Sarti added.