- Dun & Bradstreet report negative jobs growth
- High operating costs keeping Oz Business at bay
- Capital spending lowest level since September 2011
- Cash flow seen as a major issue
By Andrew Nelson
Australian businesses are increasingly putting off investments as the cost of doing business continues to rise. Significant job cuts and moves to off-shore work is a result and this is starting to take a bite out of the broader economy.
What's worse is that this negative trend is expected to continue, with the latest data from Dun & Bradstreet's National Business Expectations Survey showing that Australian businesses have no plans to hire new staff in the months ahead.
D&B reports its Employment Index has continued to deteriorate, with the downward trend through to the June 2013 quarter falling below the 10-year average level, to a score of zero. There have been no net jobs added since the March quarter of 2012 and the employment index has been in negative territory for three consecutive quarters now. By December last year, the index had reached its lowest point in more than three years at negative 7.
The business information company explains the weak jobs outlook by pointing to the high cost of doing business in Australia. The research indicates that 44% of businesses claim operational costs as being the biggest barrier to growth in the months ahead.