The latest findings from the Dun & Bradstreet Business Expectations Survey, have been mixed, with employment growth and capital investment confidence dropping, while sales and profit expectations increased.
The findings show that business executives are seeing small signs of economic revival despite remaining in negative territory.
The index for expected sales and profit increase is still negative but lifted 10 points to -38, while employment expectations fell, with 28 percent of firms expecting cut to back on staff, and 14 percent anticipating the need to decrease capital investment.
Dun & Bradstreet CEO Christine Christian said the data indicates that while executives believe measures such as the government stimulus packages will have a positive impact, the short term outlook is still negative in key areas such as employment.
“The declining outlook in employment growth continues to be a concern. The fact that the employment indicator has dropped to its lowest level recorded by the survey is a clear sign that this fear is shared by Australian executives,” said Christian.
However she said the improvements in sales and profits expectations means that on the whole, executives are feeling positive about Australia’s business prospects.
People who read this, also liked:
Three in 10 businesses to cut staff
Business expectations drop, wait and see for stimulus