Dun & Bradstreet’s latest National Business Expectations Survey reveals that sales expectations are now at their lowest point in twelve quarters, following a fall of 13 index points against June quarter figures. A similar decline (13 points) in profits expectations has placed the index in negative territory at -5.
Dismal sales and profits expectations are flowing through to other key business indicators. One in five firms (21%) indicate they will not replenish inventory levels in the coming quarter (now at an index of -1), and 15 per cent indicate they will need to discount to move stock.
Firms are also revising plans for employment and capital investment. The number of businesses expecting to increase staff numbers fell three points to an index of two, while anticipated capital expenditure decreased by two points to an index of seven. Continued delays in capital investment and other long-term strategic initiatives could detrimentally impact future productivity and GDP growth.
To read the full story click on the link: 2012-06-05 D&B Australia National Business Expectations Survey
