Businesses 'are increasingly concerned about their finances'
Company owners are increasingly concerned about the state of the Australian economy and the impact that any downturn may have on their finances.
According to new figures compiled by Roy Morgan Research, overall business confidence tumbled by 8.3 points to 109.3 in September. This was the first decline in the index since June.
Just 32 per cent of the entrepreneurs surveyed believe their financial situation will improve in the next 12 months – down by seven per cent on the previous month.
With money being so tight, it is vital that organisations have access to business loans if they have ambitions of expanding, but the volatile economic climate has meant many enterprises are reluctant to take on too much debt.
Researchers at Roy Morgan said this week's rate cut from the Reserve Bank of Australia is a clear indication that the institution is worried about the nation's economy.
"The recovery in business confidence seen mid year has stalled in September with increasing worries about the end of Australia's 'mining boom' significantly lowering business confidence," commented Roy Morgan's chief executive officer Michele Levine.
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