Lcoal business confidence remains low

Submitted 14/10/2010

Migration for Business Growth

 

The Commonwealth Bank Business SA Survry of Business Expectations for the September quarter showed that the South Australian confidence index increased marginally, by one point to 92 points.

The slight rise follows two consecutive decreases in business confidence, including a 26 per cent fall in the previous quarter.

The steady confidence levels reflect that movement of interest rates which have been at current levels since May 2010.

The total sales revenue index also increased by 5 per cent and both general business conditions and total sales revenue are expected to be significantly higher next quarter.

Two thirds of exporters indicated their export sales were the same as the previous quarter, and just under two thirds predicted much of the same in the next quarter.

Just under half of survey participants expect the Australian dollar to remain stable in the next quarter, while the remainder were split on whether it will rise or fall.

The September quarter 2010 survey also asked businesses about the impact of the Federal election, their cash flow and banking visibility.

More than 80 per cent of businesses were concerned by the policy uncertainty caused by the outcome of the Federal election, while 61 per cent belived the outcome would negatively impact their investment plans and 77 per cent believed it would negatively impact the economy.

Almost one third of the surveys' respondents stated that they often had difficulties managing their cash flow because their customers were not paying their bills. 61 per cent indicated that it was essential to have full visibility over their banking.