Business optimistic despite headwinds

A low Australian dollar and a falling oil price have helped to lift confidence among businesses despite significant headwinds from the global economy.

Business believes the economy has turned the corner even in the face of international headwinds.

The Australian Chamber of Commerce and Industry business expectations survey for the December quarter showed confidence has now improved for three consecutive quarters while business conditions strengthened to stand well above a five-year average.

"Even with the quite turbulent offshore conditions, we are seeing Australian businesses pretty solid, pretty optimistic about the year ahead," the chamber's chief executive Kate Carnell told reporters in Canberra on Monday.

The survey showed increased sales and exports, while profits are starting to escalate, something Ms Carnell said hasn't happened for some time.

Business is investing in new equipment and providing a more positive backdrop to put on more staff.

"The relatively low value of the Australian dollar is making our exports more competitive and the low oil price is easing cost pressures on business and leaving more money in the pockets of consumers," Ms Carnell said.


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Source: AAP


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