Business confidence is faltering across Australia’s retail and services sectors, according to new research released by illion (formerly known as Dun & Bradstreet Australia).

illion’s latest Business Expectations Index — a survey of 1,200 business executives across the country — fell 8.3% to 21.7 points in the September quarter survey, driven by a noticeable downturn in sentiment towards the outlook for sales, profits and selling prices.

Stephen Koukoulas, economic advisor at illion, said the survey points to a softer September quarter for the Australian economy. “It is likely that the broadly-based decline in the housing cycle and on-going concern about household spending and weak wages growth have weighed on the outlook,” Koukoulas says.

“This mix of news is all but certain to see the Reserve Bank hold official interest rates steady for the next few months, and if there is any further loss of momentum in coming months, the door may open for an interest rate cut.

Source: Business Insider