Business confidence 'will continue to fall'

Confidence levels among Australian corporations will continue to decline in the next 12 months, it has been claimed.

Managing director of insurance provider TAL Jim Minto told the Australian that the outlook for the country's economy remains rather bleak.

Business banking customers have been reluctant to take on the necessary credit to help them expand in recent months, as many are concerned that the repayments would cripple them financially.

Despite recent cuts to interest rates, Mr Minto is expecting trading conditions to get worse in the next year.

"It's not going to get easier," he was quoted as saying.

"A lot of businesses, especially professional firms and so on, are struggling," Mr Minto added.

The fact that Aussies are being a lot more cautious with their money is not helping companies either. The high cost of living has forced people to cut down on the amount of luxury goods they purchase, which has caused a number of businesses to close down.

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