The Dun & Bradstreet Business Expectations survey has just been released.
The full survey results are at this link https://dnb.com.au/article-bex-q4-2017-preliminary02.html#.WX_GvTOB24k
In terms of the key findings:
Uplift in business sentiment
Australian businesses are looking ahead to the final quarter of 2017 with renewed optimism, suggesting businesses are becoming more confident in navigating a challenging economic landscape. In Dun & Bradstreet’s July Business Expectations Survey, companies forecast a lift in sales, profits, employment, investment and selling prices in the December quarter, and reported improved business conditions in the June quarter.
Business expectations across the key aspects of the economic outlook have bounced back solidly, pointing to a lift in economic activity into the latter part of 2017. Also encouraging was a rise in the actual performance of the economy in the June quarter, a result that bodes well for the official GDP figures which are released in early September.
The Business Expectations Index rose to 19.4 points for the December quarter of 2017, up 16.2 percent from 16.7 points from the September quarter 2017, and up 14.1 percent from 17.0 points in the previous corresponding period. The preliminary Q4 2017 result is more than double the 10-year average of 9.5 points. Meanwhile, the Actuals Index climbed 18.4 percent from 7.6 points in the March quarter to 9.0 points in the June quarter.
The uptick in employment expectations should be a positive factor for the economy over the remainder of 2017 and if sustained, will support incomes and therefore household spending. The more positive tone from expected and actual investment is likely driven by ongoing low interest rates and stronger performance of the global economy, both of which are very important drivers of business investment plans. Suffice to say, the expectations and actual performance for sales and profits fit with the big-picture scenario of the economy still growing, but not at rapid pace.