Employment Expectations lowest in 17 years - The Advertiser 10-6-08Â
EMPLOYMENT expectations amongst Australian executives are at their lowest level in 17 years, the Dun & Bradstreet Business Expectations Survey released today shows.
The survey shows executives are broadly pessimistic, with selling prices the only measure expected to increase in the September quarter, reflecting inflationary pressures.
Sales and profit growth expectations have fallen sharply, down 33 and 29 points respectively from the December quarter.
Forty per cent of businesses had a decrease in sales in the March quarter and the same amount expect further weakening in the coming quarter.
High fuel prices were cited by 82 per cent of executives as having a negative impact on their businesses while 67 per cent believe the tightening credit market will have a negative impact on their operations.
The survey's employment indicator was at its lowest level since 1991, with 20 per cent of executives expecting to have fewer staff in the quarter ahead compared with a year ago, while just 10 per cent expected to employ more people.
D&B chief executive Christine Christian said the slowing economy combined with high fuel prices was putting a dampener on expectations.
"Poor results in the March quarter combined with continued pressures from inflation, the credit market, high fuel prices and slowing consumer spending have led the steep decline in executive expectations for the September quarter,'' Ms Christian said.
"The business community is now anticipating a rapid slowdown in activity in the coming months."
"Adding to the list of challenges, better than expected gross domestic product results for the March quarter have fuelled speculation regarding the need for a further rate rise. Any further increase in the cost of credit will likely add pressure to a number of businesses, with small to medium-sized enterprises likely to feel the greatest burden.''
A quarter of executives rated the cost of fuel as the most important influence on the business in the year ahead.
INDICES
Sales :Â down 28 points to -13.
Profits:Â down 20 points to -17.
Employment:Â down 14 points to -10.
Capital investment:Â down 12 points to -6.
Selling prices:Â up 5 points to 50.
