Brighter outlook for Christmas and beyond
Thursday, 19 November 2009
Melbourne, Victoria, Australia
[image|/upload/gallery/2403.jpg|Australian companies expect a positive start to the New Year following the Christmas trading period.
Photo source: Anatoly Tiplyashin, Dreamstime.com|AlignRight]As broader signs of a strengthening economic recovery take hold, Australian companies are expecting a positive start to the New Year, with improved expectations for sales, profits, capital investment and inventory levels.
However, employment expectations have deteriorated slightly, as firms deal with rising wages costs and interest rates.
These findings are from the latest D&B Business Expectations Survey, which examines expectations for the 2010 March quarter following the Christmas trading period.
According to Dun & Bradstreet's CEO Christine Christian, the continued improvement in capital investment expectations is an important sign for the recovery of the Australian business environment.
"Capital investment is crucial to Australian businesses being able to meet customer demand and return to economic prosperity in 2010. With the capital investment index remaining in positive territory for the second consecutive quarter, this shows a dramatic improvement from the all-time low reached in the June quarter of 2009.
"If businesses can manage the balancing act of improving sales and profits through the principles of good cash flow management, while at the same time investing in their business to improve productivity, this bodes well for the Australian business outlook in the first quarter of 2010."