Business

Poor expectations urge rate cut

The April 2012 ACCI Survey of Investor Confidence shows that most actual and expected business indicators stabilised at low levels over the March quarter, amidst concerns about international uncertainty, the strength of the Australian dollar and the underlying weakness in Australian non-mining industries.

With the exception of Expected Unemployment Rate, all indicators remained below their five year averages over the quarter.

The current indexes of Own Business Conditions, Sales and Profitability remained close to their historic low levels over the March quarter, while the reading of these expectation indexes indicates that businesses remain pessimistic about their own trading conditions and business performance over the June quarter.

While the actual indicators for National Economic Conditions and Climate for Investment remained relatively unchanged, their expectation indicators continued to edge lower over the quarter indicating businesses are expecting a further slowdown in the domestic economy which will further dampen business investment plans.

Business Taxes and Government Charges remained the largest constraint on business investment for the 15th successive quarter. Weak trading conditions and rising labour costs have caused Non-Wage Labour Costs and Wages Costs to increase to the fourth and seventh largest impediments on investment respectively over the March quarter.

Mr Greg Evans, Director of Economics and Industry Policy at ACCI commented:

"This Survey highlights that while actual business conditions have stabilised at low levels over the March quarter, it is concerning that business hiring intentions remained close to its historic low levels. Continued weaknesses in sales and profit performance, coupled with rising costs including the looming carbon tax have further dampened business forward expectations.

"There is no doubt the cumulative impact of poor demand conditions and rising costs is taking a heavy toll on business confidence. The arguments for an official rate could not be clearer and the Reserve Bank should take action tomorrow. Monetary policy is far too restrictive for the mainstream economy languishing at growth rates below 1% which is confirming signs of weaker labour market conditions."

Topics:  cash rates economy interest rates rba unemployment



Parents warned off high profile anti-vax campaigner

Controversial American speaker on health, nutrition and food, David 'Avocado' Wolfe, is coming back to Byron Bay.

David Wolf 'may influence vulnerable parents already hesitating'

Northern Rivers gig guide

PIRATE FLAG: The Hussy Hick's latest single is a crowd favourite that echoes a sentiment of political scepticism. Hear Pirate Flag at Tintenbar Upfront, Tintenbar Hall, tomorrow 7.30pm. $20.

What's on this week in local entertainment

Security tightened at court house

New Lismore glass dock at Lismore Court, Thomas George MP and Melissa Everson, Acting Senior Registrar, North.

Glass enclosed docks to minimise escapes and improve safety

Local Partners

New Bishop to lead church through dark times: Archbishop

"At this time the Catholic community ... hang our heads in shame in apology, in determination to ensure such failures do not happen ever again."


Northern Rivers gig guide

PIRATE FLAG: The Hussy Hick's latest single is a crowd favourite that echoes a sentiment of political scepticism. Hear Pirate Flag at Tintenbar Upfront, Tintenbar Hall, tomorrow 7.30pm. $20.

What's on this week in local entertainment

Top 10 things to do this weekend

Reece Smith, Ernie Angelosanto and Shayne Smith will compete for the top of the leaderboard at this weekend's Jodie's Inspiration Golf Day.

Are you looking to get out and about over the next two days?

Teeing off to support Jodie's Inspiration

Reece Smith, Ernie Angelosanto and Shayne Smith will compete for the top of the leaderboard at this weekend's Jodie's Inspiration Golf Day.

Vie for the top of the leaderboard, if you dare

Living End, Grinspoon stars hit stage for American Idiot

GET a sneak peek at Green Day's American Idiot The Musical as we go behind the scenes to meet the stars at a QPAC rehearsal.

Northern Rivers gig guide

PIRATE FLAG: The Hussy Hick's latest single is a crowd favourite that echoes a sentiment of political scepticism. Hear Pirate Flag at Tintenbar Upfront, Tintenbar Hall, tomorrow 7.30pm. $20.

What's on this week in local entertainment

Samuel L Jackson dismisses La La Land ahead of Oscars

Ryan Gosling and Emma Stone in a scene from the movie La La Land.

Hollywood actor and Oscars voter says Denzel should win top gong

Former Family Matters stare accused of child abuse

Reginald VelJohnson, left, and Darius McCrary arrive at the TV Land Awards on Sunday, April 19, 2009 in Universal City, Calif.

Darius McCrary has been accused of child abuse

Bindi Irwin's birthday tribute to her dad

Bindi Irwin

Bindi Irwin has paid tribute to her dad on his 55th birthday

Reality TV show gives Maryborough a boost

*WARNING EMBARGOED until 9.15pm Monday January 30* Sean Hollands and Susan Rawlings pictured after their wedding on the TV series Married At First Sight. Supplied by Channel 9.

Maryborough looks good on reality TV show.

$140k damage: landlord says property trashed, contaminated

He had what he calls "the tenants from hell"

Submarine, buses and 3000 tyres removed in $100K clean up

The list of things removed from this property is beyond astonishing

Popular island resort sells to loaded international investor

OUR PICK: Chris Foey's colourful shot of one of Gladstone's great tourism hot spots, Heron Island.

International investor snaps up piece of Gladstone paradise.

Potential home buyers punished for doing the 'right thing'

Should I go to university or buy a house?

Ready to SELL your property?

Post Your Ad Here!