More Australian businesses are concerned with the economic picture in the US rather than what is taking place on the nation’s doorstep in Asia, a new study has revealed.

The Commonwealth Bank Future Business Index shows businesses down under were also clearly influenced by not only domestic factors but also issues occurring overseas, and US comes on top of the list.

“Perhaps surprisingly, more businesses are concerned with the economic picture in the US rather than what is taking place on our doorstep in Asia,” said Symon Brewis-Weston, CommBank’s Executive General Manager of Corporate Financial Services.

“Over half (54%) of businesses said that weak economic conditions in the United States would impact on their organisation over the next six months, compared to those who identified Asia (48%) and China specifically (47%),” he said.

“Economic / debt issues in Europe were of even less concern (42% of respondents).”

To minimise exposure to ongoing economic fluctuations many organisations will increase their use of hedging (particularly Manufacturers) and debt facilities for capital investment and cash flow management (particularly Mining and Transport), the report said.

With market conditions continuing their volatile behaviour, Mr Brewis-Weston points to the value of proactive planning in order to help manage what lies ahead.

“Whilst businesses seem to have put some thought on how to manage future adverse conditions, it’s clear that more work needs to be done in order to effectively protect themselves. What that means is that we will need to see an improvement in the focus businesses place on managing and dealing with financial and business risk.”