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April 1st, 2013 
Businesses are limiting non-essential investments, avoiding the use of credit and cutting debts, a survey shows. Picture: Thinkstock
Source: Supplied
Businesses are limiting non-essential investments, avoiding the use of credit and cutting debts, a survey shows. Picture: Thinkstock
Source: Supplied
FEWER businesses expect to make large investments in the coming months, given the patchy performance of the economy.
Dun & Bradstreet’s (D&B) National Business Expectations Survey says investment expectations among Australian businesses are fading.
The outlook for capital investment is at its lowest point since the September 2011 quarter.
Fewer executives are planning to make a capital investment in their business during the coming months.
Businesses are limiting non-essential investments, avoiding the use of extra credit and cutting debts.
“What we are seeing is a business community that is still wary, still looking for sustained improvement in the state of the economy,” D&B corporate affairs director Danielle Woods said in a statement on Tuesday.
Overseas markets continued to generate mixed news, the effects of the global financial crisis still lingered, and businesses were adopting a wait-and-see approach before the federal election later this year, Ms Woods said.
Investment expectations are down significantly in the manufacturing sector, and retailers are also pessimistic.
D&B said only seven per cent of executives intended to seek funds to grow their businesses in the quarter ahead.
More than 40 per cent of businesses are taking advantage of low interest rates to reduce debt.
D&B’s survey also showed a fall in the June quarter outlook for sales, selling prices, employment, inventories and profits.
Sales expectations were at their lowest point since March 2012 as consumers preferred to cut debt and save more rather than spend.
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