Confidence levels among the biggest companies in Australia have hit
their lowest point since the end of 2012, harming plans for investment
and medium-term growth.
That’s the diagnosis from National Australia Bank’s quarterly ASX300 business survey, which found confidence among Australia’s biggest corporations fell 13 points to negative 3 in the fourth quarter of 2014, reaching its lowest point in two years.
Big business’s overall confidence is now below its long-run average and is weaker than confidence levels for smaller companies and in the broader economy.
“Business conditions continue to show a patchwork economy,” NAB chief economist, Alan Oster, said.
The outlook on the economic environment worsened too, with business conditions for the top 300 companies falling 3 points, but remaining overall positive, at 8 points for the final quarter of last year.
While the fall in conditions was attributed to a drop in profitability and a weaker trading environment, the business conditions results were still above their long term average, Mr Oster said.
Capital expenditure rose marginally in the fourth quarter, driven by non-mining investment, but there was a “worrying deterioration” in medium-term capital expenditure plans, with planned investment expected to be lower over the next 12 months.
“Big business in Australia is losing confidence, in turn affecting medium-term growth,” Mr Oster said.
Business confidence fell heavily in the mining industry, which has now replaced construction as the least confident sector in the top 300 companies.
Forward orders among the larger firms deteriorated for the second consecutive quarter, which may also indicate subdued domestic demand over the next few months.
The silver lining of the report was the weakening Australian dollar, which may be providing momentum for higher export sales and orders.
ASX300 firms have also increased their stock levels.
This news story is reprinted from www.businessspectator.com.au
Read more details on Brisbane Accountants
That’s the diagnosis from National Australia Bank’s quarterly ASX300 business survey, which found confidence among Australia’s biggest corporations fell 13 points to negative 3 in the fourth quarter of 2014, reaching its lowest point in two years.
Big business’s overall confidence is now below its long-run average and is weaker than confidence levels for smaller companies and in the broader economy.
“Business conditions continue to show a patchwork economy,” NAB chief economist, Alan Oster, said.
The outlook on the economic environment worsened too, with business conditions for the top 300 companies falling 3 points, but remaining overall positive, at 8 points for the final quarter of last year.
While the fall in conditions was attributed to a drop in profitability and a weaker trading environment, the business conditions results were still above their long term average, Mr Oster said.
Capital expenditure rose marginally in the fourth quarter, driven by non-mining investment, but there was a “worrying deterioration” in medium-term capital expenditure plans, with planned investment expected to be lower over the next 12 months.
“Big business in Australia is losing confidence, in turn affecting medium-term growth,” Mr Oster said.
Business confidence fell heavily in the mining industry, which has now replaced construction as the least confident sector in the top 300 companies.
Forward orders among the larger firms deteriorated for the second consecutive quarter, which may also indicate subdued domestic demand over the next few months.
The silver lining of the report was the weakening Australian dollar, which may be providing momentum for higher export sales and orders.
ASX300 firms have also increased their stock levels.
This news story is reprinted from www.businessspectator.com.au
Read more details on Brisbane Accountants
That’s the diagnosis from National Australia Bank’s quarterly ASX300 business survey, which found confidence among Australia’s biggest corporations fell 13 points to negative 3 in the fourth quarter of 2014, reaching its lowest point in two years.
ReplyDeletecream shawl , crochet shawl , pink shawl , ladies capes and shawls , satin shawl , lace shawl , green shawl , shawl supplier , beaded shawl , paisley shawl , knitted shawl