More Australian businesses plan to hire staff in next three months
The number of businesses indicating they will hire staff in the months ahead has increased for a third consecutive quarter, supporting a view that underlying economic conditions are stable and that confidence is sound in spite of recent high-profile company and industry announcements on job cuts.
The latest D&B National Business Expectations Survey shows:
- The employment expectations index has lifted slightly to 9.2 points, up from 8.8 points in the previous quarter, and 0.1 points a year ago.
- The sales index has risen strongly to 33.6 points, up from 27.5 points in the previous quarter and 13.5 points from a year earlier.
- Profit expectations for the quarter ahead have flattened out, with the index easing from 25 points last quarter to 20.7 points, while up from 14.2 points last year.
- Plans for capital investment have increased for a second consecutive quarter, lifting from 7.2 points to 10 points.
- The selling prices index has jumped to 24.2 points, up from 19.5 points last quarter and from 2.5 points a year earlier.
Issues expected to influence operations in the June quarter 2014
- 66 per cent of businesses are more optimistic about growth in 2014 compared to 2013, while 29 per cent are less optimistic. Six per cent is undecided.
- Cash flow is identified as the issue most likely to influence business operations in the next quarter (31 per cent), followed by the level of the dollar (17 per cent), and interest rates and fuel prices (10 per cent each).
- 36 per cent of businesses had customers or suppliers that became insolvent, or were otherwise unable to pay them, during 2013.
- 47 per cent of businesses would choose to miss payments to suppliers if unable to pay all their bills on time, followed by a business credit card (21 per cent) and utilities (11 per cent).
- 50 per cent of businesses expect no impact from the current level of the dollar, while 17 per cent expect a positive impact and 27 per cent a negative impact. Six per cent is undecided.
- 18 per cent of businesses intend to seek finance or new credit in the quarter ahead to help their business grow, while 79 per cent will not. Three per cent is undecided.
To read the full release click on this link: DB Business Expectations Survey – Q2 2014 – final
For further information contact Josh Maher | Manager, Communications & Corporate Affairs
Dun & Bradstreet Australia | Level 6, 479 St Kilda Road, Melbourne VIC 3004
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