The Dun and Bradstreet business expectations survey is out today and it is weathering the storm in consumer confidence with profit expectations still high:
Sales too:
Capex and employment strengthening:
And selling prices are still high if easing:
Business credit is back in vogue:
Encouraging stuff. The problem with this survey is that expectations very clearly lag actual results, not lead them. A such I’d take this with a grain of salt for while yet. Kouk sounds doubtful too:
“Activity in the business sector remains mixed, however, the positive news on borrowing and capital investment intentions points to a degree of optimism, particularly in the non-mining sectors,” said Stephen Koukoulas, Economic Advisor to Dun & Bradstreet.
“While the lift in capital expenditure expectations in these areas is encouraging, the current levels do remain below the peaks seen in previous cycles.
“A further uptick in expected employment levels is also encouraging and bodes well for the unemployment rate remaining below six per cent in the current cycle,” Mr Koukoulas added.
“After a strong upswing in late 2013 and early 2014, expectations for sales, profits and selling prices have all edged lower, although they remain well above the levels of a year ago.
“Overall, it is a picture where the RBA is likely to extend the period of interest rates on-hold, which, with rates at current record lows, is likely to remain a positive influence for the business sector over the second half of 2014,” Mr Koukoulas concluded.
Full report here.
