The economic outlook across the Tasman is looking slightly better, but it is still not great, according to a business survey released on Monday.
The Dun and Bradstreet quarterly survey of business expectations in Australia says most of its indicators suggest a more positive outlook for the economy over coming months among business managers, but with one key indicator still heading downwards.
The survey's outlook for capital investment by business in the September quarter has fallen again from the current period, with a net 11% of companies still expecting to reduce spending.
This is down one point from the previous Dun & Bradstreet survey for the June quarter, just ending.
While indicators of expected sales, profits and employment also are negative, the survey shows, they have improved from the current quarter.
In expected sales, the index is up 16 points to -32, with 15% of executives expecting an increase in sales and 47% decrease.
The profits index is up 17 points to -40, with 13% of executives expecting profits to rise and 53% anticipating falls.
Expectations of employment are up two points to -24, with 8% expecting an increase in staff and 32% a reduction.
But the expectations of capital investment spending are down one point to an index of -11, with 6% of executives expecting an increase and 17% expecting to cut spending.
Inventories expectations are down one point to minus 19, Dun & Bradstreet said.
The selling prices index is down 14 points to an index of 56, with 63% of firms expecting to raise prices and 7% expecting to drop them.
The indices are the product of subtracting the proportion of executives expecting positive outcomes from those expecting negative outcomes.
Dun & Bradstreet CEO Christine Christian said the data suggested that "the road ahead will continue to be challenging for Australian businesses".
"Recent data indicate that Australia has not entered a recession, however there are still major challenges ahead," Christian said.
"The business outlook is being weighed down by declining capital investment expectations, two out of three firms expecting to raise prices and businesses still planning to cut back on staff."
Dun & Bradstreet's economic consultant, Duncan Ironmonger, said the survey indicated that, after "a very bleak June quarter, there would be some improvement in the September quarter".
"In July, there is an income tax cut and government
infrastructure spending will have an increasing positive impact on
jobs and incomes in the quarters to follow," Ironmonger said.
