Businesses intend to make relatively strong increases in capital investment and inventories.

Australian businesses believe that 2010 will be better than 2009, according to findings from the latest business expectations survey from Dun & Bradstreet.

Companies reported their strongest expectations in many years for inventory and employment growth. Australian executives also have increased profit level expectations, with the profit index reaching its highest point in five years.

"With unemployment being seen as a major concern throughout 2009, the improved employment expectations across all sectors is welcome news for both those who are in the labour market and for business confidence on the whole," says D&B chief executive officer Christine Christian.

According to Dr Duncan Ironmonger, Dun & Bradstreet's economic consultant, businesses are backing up these expectations with intentions to make relatively strong increases in capital investment and inventories.