Business confidence 'at its highest point since January'
Company owners are finally feeling more optimistic about the future prospects of their organisation.
Business banking customers throughout the country have generally been extremely cautious about how much debt they are saddling themselves with this year, as the global economy has been very shaky.
However, new figures compiled by Roy Morgan Research have indicated that levels of corporate confidence in August were at their highest since January 2012.
The index was recorded at 117.6 during the month, which was up from just 109.6 in July.
There is a general feeling that trading conditions in Australia bottomed out in June and the picture is definitely looking more positive for many firms.
Around 55 per cent of the respondents believe the next 12 months will be a good time to invest in their enterprise. Although this may appear low on the face of it, it is still the strongest reading since February 2012.
Industry communications director at Roy Morgan Research Norman Morris said that even though the results are encouraging, it is perhaps too early to celebrate just yet.
He believes that the uncertain global economic outlook and weak commodity prices could still have a negative impact on Australian companies.
"The ultimate impact of any reductions in interest rates on economic activity will be influenced by the willingness of business to borrow which in turn will be dependent on how business sees the economic conditions improving over the next few years," he remarked.
Of course, it is difficult to judge which firms are most likely to take out business loans in order to expand in the near future and a lot depends on which sector organisations are operating in.
Mining organisations, for example, are obviously having a better time of things at the moment, as the natural resources sector is thriving.
The Roy Morgan study also suggested that industries such as public administration, education and training and information media and telecommunications are also likely to fare well in the short term.
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