Australian businesses spooked by US economy
Australian businesses believe they are being impacted by weaker economic conditions overseas, particularly in the US.
New research released by the Commonwealth Bank, the inaugural Commonwealth Bank Future Business Index, has revealed the degree to which adverse economic reports in the US and Europe are playing on the minds of Australian businesses and the decisions they make.
Commonwealth bank executive general manager of corporate financial services Symon Brewis-Weston said businesses were clearly influenced by not only domestic factors but also issues occurring overseas. Surprisingly, more businesses were concerned about the economic picture in the US rather than what is taking place on their own doorstep in Asia.
"Over half (54 per cent) of businesses said weak economic conditions in the US would impact on their organisation over the next six months, compared to those who identified Asia (48 per cent) and China specifically (47 per cent)," he said.
Brewis-Weston said the economic and debt issues facing Europe were of even less concern, with only 42 per cent suggesting they would have an impact on their businesses.
The Commonwealth Bank said the index indicated that, overall, the outlook for the next six months remained pessimistic.
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Mike Taylor
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