Q2 business confidence took a hit, report shows

Levels of corporate confidence in the second quarter of 2012 took a hit, new figures released by National Australia Bank (NAB) have confirmed.

Business sentiment fell to minus two on the company's barometer, which is the lowest score since the third quarter of 2011, Bloomberg reports.

Representatives of the NAB recently told the Advertiser that firms in South Australia were benefiting from low rates on their business loans, but its latest survey suggested that many entrepreneurs are concerned about their enterprise's future prospects.

A lot of organisations are still extremely worried about the situation in the eurozone and are fearful that the financial problems could spread further.

"The cumulative 125 basis points of cuts by the Reserve Bank of Australia (RBA) since late last year does not appear to have fully offset heightened concerns about Europe," an NAB representative stated.

Businesses have also been warned not to expect any further interest rate reductions in the next few months, as the RBA is happy with the current cash rate of 3.5 per cent.

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