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Dun & Bradstreet’s latest Business Expectations Survey has revealed an air of optimism among Australian business owners in the lead-up to Christmas.The survey has recorded retailers and the services industry lifting forecasts despite fragile consumer confidence and flat retail figures in August.
According to Dun & Bradstreet, 47 per cent of businesses expect higher sales levels compared to last year, while 11 per cent have forecast a decline, and 42 per cent similar trade.
The survey also revealed discounting is not planned, with 24 per cent of businesses intending to raise the prices of their goods and services, six per cent to cut prices, and the majority to stay unchanged.
Dun & Bradstreet director Steve Brown noted an uptick in business expectations is often seen for the Christmas period, however stated the current outlook “appears stronger and more broad-based than recent years”.
“In addition to higher sales and profits, expectations for increased capital investment and employment are stronger than in 2013, borrowing intentions are stable, and the proportion of businesses more optimistic about growth this year, compared to last year, is holding at the 60 per cent mark,” Brown commented.
“These latest numbers consolidate 12 months of generally positive expectations from the business sector.
“Questions remain, however, on the health of consumer finances, and whether Australians are willing and able to increase their discretionary spending over the next few months.”
