Survey Reveals Australian Enterprises Opt to Keep Money rather than Invest
Outlook towards economic growth more negative in AU and NZ
The economic insecurities affecting most countries around the world has caused majority of Australian businesses to become more wary to the point of being pessimistic.
A report from the NZ Herald said that at least 30 percent of Aussie and New Zealand firms are more concerned about maintaining resources in response to a survey conducted by financial services provider Ernst & Young.
The same report revealed that viewpoints towards global economic progress are relatively negative in these two countries with a mere 14 percent expressing their optimism because of the sluggish growth in the U.S. and Europe confronted with the possibility of recession.
The Capital Confidence Barometer of Ernst & Young analyzed 1,000 business executives globally last month. These figures included 100 from Australia and 10 from New Zealand.
The attitude towards mergers and acquisitions showed that the Asia Pacific region remains as the most preferred place for investments with 72 percent of Australasian companies and 49 percent from the rest of the world indicating their preferences.
Right now, the principal investment destinations include China, India, Malaysia and Singapore.
In terms of growth, 51 percent of companies are concentrated on growth, an increase from 49 percent in April while 42 percent want to direct their efforts in maintaining stability which is a rise from 33 percent during the same period.
Meanwhile, 7 percent is focused on survival, a decrease from 18 percent and so far, the lowest level since the survey was created in 2009.
It was also reported by the NZ Herald that Australian corporations were supposed to be on track for an "Asian investment binge" but this might not push through because of what is happening in Greece and other countries in Europe.
The Australian reported "Global market volatility and economic uncertainty in recent months appear to have unnerved Australasian businesses, despite our sound local economic fundamentals," according to statement from E&Y Oceania managing partner Graeme Browning.