Home > Our Publications > Australian Outlook> 2003 > July

AUSTRALIAN business executives are more confident about the economy than they have been at any point in the past 15 months, according to a new survey.
Expectations for the next quarter are bullish, with capital investment plans at their highest in three years, assuming inflation remains tamed, Dun & Bradstreet found.
More than one in three executives questioned for the quarterly National Business Expectations Survey said the rise in the Australian dollar had helped their business.
But the more than 1200 business owners and senior executives who were surveyed said they were keen to see reforms in Australia's tax system.
"The number one tax that businesses want prioritised for government reform is payroll tax (58 per cent), followed by superannuation tax (16 per cent)," Dun & Bradstreet chief executive officer Christine Christian said.
"Personal tax and international tax were equal third on 10.5 per cent."
The outlook for investment, profits and employment remained generally positive, she said.
"Profits and employment expectations are the best in 15 months and sales are the best in more than a year."
Dun & Bradstreet economic consultant Duncan Ironmonger said investment prospects would be boosted by a continued easing of inflationary pressure, which had been assisted greatly by the cash rate holding steady at 4.75 per cent for the past year.
"In spite of the housing price 'bubble', the Reserve Bank board is obviously not worried about the general inflation outlook," Dr Ironmonger said.
"The rise of the Australian dollar appears to be positive for business overall, A total of 37 per cent of executives said it was having a positive impact, compared with 28 per cent negative and 34 per cent no impact either way," Dr Ironmonger said.