Manufacturing sector pessimistic about the quarter ahead according to Dun & Bradstreet Australia
Uncertainty over interest rates and continued pressure from the high Australian dollar are weighing on businesses, with executive expectations for the September quarter 2012 plummeting.
Dun & Bradstreet’s latest Business Expectations Survey reveals that projections for sales and profits have fallen 11 points, a significant contrast to the five quarter high in sales expectations for the June quarter. One in four firms now anticipates a decrease in sales during the September quarter and a similar number expect to deliver lower profits.
The fall in sentiment comes as one in three Australian businesses (35%) expect some form of negative impact from the high dollar, up nine percentage points in one month. Likewise, 32 per cent of executives cite interest rates as the key influencing factor on operations in the quarter ahead, a five percentage point rise since March.
Concern over interest rates is rising most dramatically among retail and wholesale businesses, with 40 and 29 per cent respectively indicating interest rates will have the biggest impact on operations in the coming quarter. These figures have jumped 17 and 10 percentage points respectively.
To read the full story click on the attachment: April 30 2012 Dun Bradstreet Business Expectations Survey