The majority of businesses expect sales to grow in the new year, despite the fact many continue to feel unsure about an economic recovery occurring any time soon.
According to The Executive Connection (TEC) Business Confidence Index, over 60 percent of CEOs and business leaders expect a spike in sales in 2012, with businesses in New South Wales and Western Australia expecting the greatest boon.
The TEC Business Confidence Index also found a majority of business leaders (87 percent) plan to either maintain or increase staff-count over the next year, while almost half expect to see a jump in profitability.
“SMEs are the backbone of the Australian economy, and the fact that such a high percentage are confident of increasing their sales and profitability is a great sign for Australia,” TEC CEO Chris Gorman said.
The research also found over a quarter of business leaders are expecting to increase business expenditures over the next year.
Business leaders in New South Wales had the greatest plans to expand staff numbers, with almost half (47 percent) expecting to hire more employees in the next year. Over half of New South Wales businesses also expect to see a spike in profitability over the next year.
This confidence isn’t reflected however, in predictions about the global economy, with 85 percent believing overall economic conditions will either worsen or stay the same in 2012.
Of all the states, Western Australian businesses were most confident about economic improvement, with over a quarter of business leaders expecting the economy to improve in 2012. Western Australian managers also had the greatest expectation of a sales increase, with 66 percent expecting sales figures to increase in the New Year.
Conversely, Queensland business owners were the least confident about the economy, with only 6 percent expecting improved economic conditions.
Victorian business leaders also had a gloomy outlook on the economy with only 8 percent predicting an improvement. They were also the least likely to expand their staff numbers (33 percent), and the least confident of a rise in profitability (36 percent).