Business points to muted outlook in Q3
Business expectations have dropped off for the September quarter following a softer-than-expected March quarter. Dun & Bradstreet's April Business Expectations Survey shows lower actual sales, profits, employment, selling prices and capital investment in the first quarter of 2017 compared to the final quarter of 2016.
"After an encouraging end to 2016 and significant optimism in the early part of 2017, the business sector has indicated a deterioration in conditions into the second half of the year.
It points to a growing risk that the RBA may deliver a further interest rate cut in the months ahead which would be even more likely if inflation remains well contained, as per the results on expected selling prices"
Stephen Koukoulas, Dun & Bradstreet Economic Adviser