Business outlook starts to brighten

Corporate confidence appears to have improved across Australia, following a sharp downturn in June.

According to Roy Morgan Research's latest barometer, business sentiment was measured at 109.6 in July – up from just 105.4 in the previous month.

The weak global economy has taken its toll on companies across the country and many organisations have been wary about taking on credit from banks and lenders.

Veda recently revealed that the demand for business loans slowed considerably in the second quarter of 2012, which is perhaps unsurprising given the turmoil in the eurozone.

However, in July the Australian share market rose by more than four per cent and Aussie households started to spend more money on goods and services again.

Industry communications director at Roy Morgan Research Norman Morris said: "The small recovery in business confidence in July provides some optimism that we have passed the worst but the situation remains fairly fragile given the uncertain global economic outlook."

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