Australian business outlook heading into the December quarter is gloomy, with businesses expecting a sharp increase in seller prices and lower profits, according to Dun & Bradstreet’s latest Business Expectations Survey.
The survey found that businesses expect negative growth on sales, profits, employment and inventories for a second consecutive quarter. The continuing high fuel prices and the impact of the interest rate rises in May and August were given as are significant contributors to this situation.
Fuel prices were given as the key issue impacting business over the coming quarter by 73 per cent of execitives, while 34 per cent said they had been negatively impacted following the interest rate rises in May and August.
Income tax cuts have made little impact on businesses, with 69 per cent believing they have had none at all. However proposed red tape cost cuts are expected to make a difference to business with 55 per cent of executives anticipating a positive impact.
For more information, read D & B’s media release.