Businesses don't expect to hire many more workers despite increased expectations for sales, profits and investment, according to the latest Dun and Bradstreet business expectations survey.
Dun and Bradstreet says employment expectations for the June quarter are at their lowest point in more than three years, with businesses indicating they will slow hiring.
"Business expectations through to the middle of 2017 are mixed and have taken a step down from the optimism seen at the end of 2016," Dun and Bradstreet economics adviser Stephen Koukoulas said on Tuesday.
The retail industry showed a particularly sharp fall in employment expectations for the June quarter, with retailer expressing a muted outlook.
Dun and Bradstreet's business expectations index, which measures sales, profits, employment and capital investment, rose to 19.5 points for the June quarter of 2017, from 18.9 points for the March quarter of 2017.
The index is currently at its highest point since the December quarter of 2015, when it reached 21.8 points.
Mr Koukoulas said expected sales for the June quarter of 2017 continue to rise at a solid pace, which points to ongoing expansion activity into 2017.
Expectations for profit in the June quarter were largely in line with the March quarter.
Mr Koukoulas said a steady rise in expected capital expenditure in the June quarter was encouraging given that it had been weak for the last few years.
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