Businesses in Australia have recovered well from the budget earlier this year and are showing healthy signs of optimism and confidence, a new survey has indicated.
In conjunction with Westpac, the Australian Chamber of Commerce and Industry (ACCI) monitors business sentiment in Australia on a quarterly basis in the form of the Survey of Industrial Trends. In the September 2014 release of the survey, analysts witnessed a "marked rebound" in business expectations for the next six months.
Demand and production were two measures that reported strong consolidation, while businesses also cited improvements in new orders and output. More companies also expecting an increase in profits over the coming year.
While other indicators generated mixed results, the overall outlook from the survey was positive.
One of the key takeaways from the report, however, was the improvement seen in one of Australia's most important sectors - manufacturing. According to the survey, increased consumer spending and the continued rise of the construction sector (both residential and non-residential) have driven demand in the manufacturing industry.
However, ACCI CEO Kate Carnell recommended those in the sector to exercise caution, noting that there was still work to do.
"The improvement in trading conditions, while welcome, is only tentative at this stage. Manufacturers need to see a sustained improvement in new orders and profit expectations before expansion of capacity gets underway in earnest," she said.
"As the survey results show, new orders rather than capacity is still the dominant factor limiting production. The recent fall in the Australian dollar gives further cause for optimism as manufacturers have been doing it tough for quite a while."
Companies in manufacturing, as well as other sectors such as wholesale trade, have solutions such as debtor finance at their disposal to help with cash flow and ensure they can maintain performance.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].