Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Businesses braced for tough period ahead

Staff Reporter 1 minute read

Business expectations for the first quarter of 2009 have fallen to record lows according to the Australian Chamber of Commerce and Industry’s (ACCI) January Survey of Investor Confidence.

The findings come off the back of similarly bleak expectations published yesterday by Dun & Bradstreet.

According to the ACCI business conditions are at their lowest point since the survey began in 1998 and expectations for sales and profitability have fallen into negative territory for the first time in more than a decade.

The survey also found interest rates remained a constraint on business investment despite aggressive rate reductions at the end of 2008. The ACCI said this reflected the low pass-through rate of official rate cuts to business borrowers.

Greg Evans, ACCI director of industry policy and economics, urged lenders to pass rate reductions on to businesses in order to support local commerce.

“Major lenders should see that official interest rate reductions flow to business borrowers and also that tightened lending criteria is relaxed to encourage business investment.”

Businesses braced for tough period ahead
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day



more from the adviser
David Hyman

Breaking News

Brokers promote competition in lending: Lendi

Brokers are driving competition in the mortgages sector and chang...

money au ta

Breaking News

SME fintech closes $25m raise to fund expansion

An SME lender has raised $25 million in equity to fund the ‘rap...

loan application

Breaking News

Hot Property: The biggest property headlines from the week 26 to 30 July

The weekly round-up of the biggest news stories from across Momen...