Australian businesses remain downbeat about the outlook for the short-term and are waiting to judge the government’s stimulus measures before making any revisions to their business expectations.
According to the latest Dun & Bradstreet Business Expectations Survey business sales and profits expectations continued to decline – 64 per cent of businesses now expect profits to decline in the June quarter.
In addition 57 per cent of firms anticipate a decline in sales.
Employment expectations have also fallen to a new low with 28 per cent of firms expecting to cut back on staff in the quarter ahead.
Dun & Bradstreet CEO Christine Christian said that while business executives were supportive of government stimulus plans they were yet to witness any real benefits – and didn’t expect to for some time.
“The government’s stimulus packages are critical to providing support for business. However, the deteriorating outlook, particularly for employment, is a sign that no one expects the benefits to be realised immediately and that things are likely to get worse before they get better,” she said.
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