Sentiment among local manufacturers has fallen noticeably, as concerns over rising staffing costs and the high Australian dollar dampen the sector’s sales and profit expectations, according to the latest Dun & Bradstreet National Business Expectations Survey.
The survey found half of non-durables manufacturers, up from a third in May, expect the high local dollar to have a negative impact on their business in the September quarter. While 37 per cent expect wages growth to have the biggest effect on operations – up seven percentage points.
This has prompted industry executives to downgrade sales and profit projections, with non-durables manufacturers’ sales expectations falling 16 points to an index of 20 and profit projections falling two points to an index of nine. Durables manufacturers are similarly pessimistic about sales (down 18 to 1) and profits (down 16 to -1) for the coming months.
According to Dun & Bradstreet Director, Adam Siddique, the decision to raise the national minimum wage is impacting sentiment amongst manufacturers, who are already struggling under an elevated exchange rate.
Source: D&B Australia - To read the full story click on the link: Dun Bradstreet Business Expectations Survey June 2012