Newsletter #418 (View other news stories)
Business outlook slides
Melbourne, Victoria, Australia
Thursday, 9 Jul 2009
 The latest D&B Business Expectations Survey shows that 43% of firms expect sales to decrease in the September quarter. Photo source: Shutterstock |
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Findings from the latest D&B Business Expectations Survey show that 43% of firms expect sales to decrease in the September quarter.
These expectations reflect the poor results experienced in the March quarter, where 47% of businesses saw a decrease in sales. Yet despite poor March quarter results and significant expectations for reduced sales, the index has lifted, with 19% of businesses anticipating an improvement in the September quarter.
The expectations of those in the retail sector have improved more significantly than others, with the retail sales index increasing by 33 points compared to the June quarter (the index is still in negative territory). However, rising unemployment will increase pressure on household spending and consequently retail sales will be impacted leading into 2010.
Also reflecting poor March quarter results, the profits index remains in negative territory. Some 48% of executives anticipate that profits will decrease in the September quarter.
Expectations for employment have made a small upward movement but are still in negative territory, with 31% of firms expecting to cut back on staff.
Capital investment expectations also remain in negative territory, with 16% of firms expecting to decrease spending in this area.
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