BUSINESSES POSITIVE ABOUT ECONOMY
9 May 2014,
BUSINESSES remain optimistic about short-term economic outlook, despite proposed spending cuts in the Federal Budget according to research by Dun and Bradstreet.
Companies have predicted a boost in sales, employment and investment activity during the third quarter of this year in the latest Business Expectations Survey.The sales index has lifted to a new 10-year high, with 44 per cent of businesses anticipating increased trade and just nine per cent expecting a reduction.
CEO Gareth Jones (pictured) says it’s encouraging to see the optimism continue, after a generally positive start to the year.“All of the measures in D&B’s Business Expectations Index are up on last year’s readings and importantly employment and investment expectations, which fell into negative territory late last year, have now improved for a fourth consecutive quarter.
“The further lift in the employment outlook bodes well for the rest of the economy and provides support to opinions that the unemployment rate may have peaked following last month’s surprise fall to 5.8 per cent,” Jones says.Confidence across industries remains high with 64 per cent of businesses expecting strong growth and 21 per cent indicating intentions to hire staff to accommodate the activity.
Manufacturing is notably positive, overcoming concerns about the Australian dollar and high-profile closures to 58 per cent (or 50.8 index points) of the sector anticipating a jump in sales.
“Expected sales have risen strongly since the middle of 2013 and are almost three times over the 10-year average, suggesting that economic growth is poised to rise to an above trend pace when the official data for the first half of 2014 is released.“Encouragingly, the recent gains in expected employment have consolidated at a more favourable level and the capital investment outlook has maintained its improvement,” he says.
Koukoulas says the only downside is a “marginal pull-back” in expected profits, although that is from a high base.
BRISBANE BUSINESS NEWS
PETS before profits is the Greencross Vets (ASX: GXL) mentality, which appears to be paying off in light of the company’s rapid growth and recent merger with Petbarn. GXL has experienced a 25 per cent compound annual growth rate of clinics and stores over the past five years. Since 1994, it has grown from a single Greencross clinic to 107, and has recently taken on 108 Petbarn and 25 Animates retail stores in Australia and New Zealand. As one of the fastest growing ASX-listed...Read More
Chief economist Ivan Colhoun says historically labour demand indicates that interest rates will follow suit. “While the pace of improvement in job ads suggests that labour market conditions...Read More
BLUE Sky Alternative Investments Limited (ASX:BLA) has launched an initial public offering (IPO) of shares in a subsidiary company. The Blue Sky Alternatives Access Fund (BASSF) will be Australia’s first diversified, alternatives-focused Listed Investment Company (LIC) on the ASX. BSAAF is seeking to raise a minimum of $50 million and up to $100 million under the IPO at an issue price of $1 per share, along with options on a one-for-one basis with an exercise price of $1 before...Read More
The ANZ-Roy Morgan weekly report shows a drop last week, coinciding with the Commission of Audit’s report and speculation around the deficit reduction levy. Chief economist Ivan Colhoun says the figures provide a clear reading of the budget’s impact on consumers. “The policies of most concern to the consumer...Read More
GREENCROSS Limited (ASX: GXL) has announced its acquisition of four veterinary clinics and the opening of three retail stores. The practices will fall under the Greencross partnership model,...Read More
SMALL businesses enjoying high trades on weekends and public holidays could be taking advantage of same day settlement. Often, businesses don’t see their weekend takings arrive in their bank account until mid-week, causing interruptions to cash flow and reliance on short term loans. With same day settlement businesses can get their card sales in their account on the same day, 365 days a year, including weekends and public holidays. This enables a much smoother cash flow for...Read More
Companies have predicted a boost in sales, employment and investment activity during the third quarter of this year in the latest Business Expectations Survey. The sales index has lifted to a new 10-year high...Read More