The latest Dun & Bradstreet National Business Expectations Survey for the June 09 quarter has recorded a negative outlook for profits, sales, capital investment and employment expectations, with many businesses adopting a “wait and see” approach as to whether the government’s stimulus package will have a positive effect on the economy.
The results of the survey indicate that sales and profit expectations continue to dive with 57 percent of firms anticipating declining sales. The employment growth indicator has also dropped to it’s lowest level ever recorded by the survey.
Recent changes in credit market conditions have negatively impacted 47 percent of businesses, and 48 percent of executives rank interest rates as the primary influence on their business.
According to Dun & Bradstreet CEO Christine Christian, we are yet to see the effects of the stimulus package, with things expected to get worse before they get better.
“The Government’s stimulus packages are critical to providing support for business. However, the deteriorating outlook, particularly for employment, is a sign that no-one expects the benefits to be realized immediately.”