Australian executives optimistic for 2011
Australian executives are positive on the economic outlook for 2011, despite weakness in consumer spending, according to a business expectations survey by Dunn & Bradstreet.
The survey of 1,200 businesses shows near-record expectations for most sectors, while retailers have reported some of their most difficult circumstances for years.
According to the report, companies exposed to the emerging economies in Asia were keeping the economy going full steam ahead, as retailers struggle to get consumers to spend.
Dun & Bradstreet director of corporate affairs Damian Karmelich said the result was a signal that a gap was emerging between retailers and the rest of the economy.
"However, for firms engaged in business-to-business trade and exposed to the growth of emerging economies like China the outlook is positive."
"There is a clear distinction between retailers and the rest in actual performance. The non- retail sector is driving the economy while retailers struggle with household deleveraging."
Forty per cent of the executives surveyed rank interest rates as the primary influence on their business, a rise of 14 per cent in two months and the highest figure recorded since May 2009.
Falling expectations in sales saw that index slump three points to 31, although still above any March quarter readings in the last six years.
The inventories index fell three points to 10 but is at its second-highest level since mid 2004.
Employment expectations have climbed one point to an index of nine, the highest figure registered in seven years.