(27 May 2008 – Australia) The latest edition of PricewaterhouseCoopers’ Private Business Barometer shows that Australia’s private businesses remain positive about their medium term prospects, despite facing short term challenges associated with the current economic conditions.
The Barometer is based on direct interviews conducted by East & Partners with
a natural sample of 750 private businesses turning over between $A10 and A$100
million. Since its launch one year ago the Barometer has become a regular,
authoritative fixture on the calendar of private business owners, senior
executives, analysts, media and government policy makers.
The third edition of the Barometer, released today, is based on interviews
conducted during the month of February 2008. Some of the key findings from this
latest edition of the Barometer include:
PROFITS: Businesses are setting more optimistic medium-term (three-year)
profit targets than in February 2007, but less optimistic short-term (one-year)
targets. Both long and short-term average sales and profit growth targets remain
well over 10%
DEBT: Facing rising debt costs, businesses have reduced their debt ratio
(total borrowings against total assets) from 41.3% in February 2007 to 38.8% in
February 2008.
FUNDING: Every respondent nominated funding the business as a key
challenge.
GROWTH: Businesses achieved a 14.4% average increase in sales and 13.1%
average rise in profits during the 12 months to February 2008.
CRUNCHED: About half of businesses (51.2%) rated availability of credit
as a key impediment to meeting targets in the next year.
TIGHTENING UP: Only 34.8% of businesses announced definite intentions to
hire more employees, down from 46.1% in October 2007.
Your free copy of the Barometer can be downloaded
here.
For more information about the latest edition of the Barometer or to listen to
an audiocast about the findings, please visit
www.pwc.com/au/pcs