none
none

RESULTS JUSTIFY INCREASING MANUFACTURING CONFIDENCE

06-02-2018
by 
in 
Lots of moneyb

Confidence continues to rise as Australian businesses predict healthy profits well into the year, according to illion’s latest Business Expectations Survey. The preliminary survey for the June quarter sees the Business Expectations Index rising by 31% over the previous year.

Business confidence has reached its highest level since Q4 2015. And this positive outlook is supported by the Business Actuals Index, which at 15.8 points has risen 80.6% in a year and is now at its highest level since March 2004.

Expectations in the construction industry have increased to 17.7 points - almost three times higher than the same time last year – and manufacturing confidence is at its highest level since June 2003.

According to illion Economic Adviser Stephen Koukoulas: “The main driver of this positive tone was a sharp upswing in profits, although the other components of the survey – sales, selling prices and employment were also higher. The broad-based nature of the lift in business expectations bodes well for the economy in the near term, which is likely to confirm the RBA will hold interest rates steady.”

Koukoulas also points to increased investment as a pointer to prosperity: “After several years of weakness, capital investment edged higher during the first half of 2017. Expected capital investment has risen further in the first half of 2018, reaching its highest level since December 2010. Based on these results, capital expenditure will provide a solid foundation for the economy into 2018.”

Related news & editorials

  1. Australian manufacturing
    01.02.2018
    01.02.2018
    by      In
    The inexorable rise of the Australian Performance of Manufacturing Index during 2107 has continued into the new year with production leading the way. The AI Group’s Australian PMI has come in at 58.7 in January 2018, showing an increased level of growth, and the production subindex jumped to 62.7,... Read More
  2. Belgian cement works
    31.01.2018
    31.01.2018
    by      In
    Australian technology company, Calix, has secured EUR3.4 million in working capital from Efic to build the CO2 capture facility for the Low Emissions Intensity Lime and Cement (LEILAC) project in Belgium.
    Efic, the Australian Government’s export credit agency, is a specialist financier that... Read More
  3. Lots of money
    24.01.2018
    24.01.2018
    by      In
    This year looks likely to be the last chance for small businesses to take advantage of the Federal Government’s $20,000 instant asset write-off. So any business with an annual turnover of less than $10 million has until 30th June 2018 to make a qualifying investment.
    The scheme originated in the... Read More
  4. Aussie dollar weaker
    09.01.2018
    09.01.2018
    by      In
    Business confidence in the manufacturing sector is at its highest level since June 2003, according the latest Business Expectations Survey from illion (formerly Dun & Bradstreet).
    “Manufacturing firms that were able to withstand the global financial crisis and the Australian dollar above parity... Read More