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Source: ABC News
Published: 9 March, 2010
A private survey shows Australian businesses are feeling positive heading into the next few months.
The Dun and Bradstreet Business Expectations Survey for the June quarter shows sales and profit expectations are up significantly.
There has also been particular improvement in the capital investment sector, with expectations now at their highest level in seven years.
Employment expectations have also improved.
"Employment expectations were at 20-year lows; we now find ourselves back very strongly in positive territory," said Dun and Bradstreet's director of corporate affairs, Damian Karmelich.
"So when we think about where we were last year and comparing it to now, there's been a dramatic turnaround in the outlook for business."
Selling price expectations have also risen for the first time in five quarters.
Mr Karmelich says that is one reason why interest rates are likely to keep rising.
"With the employment expectations returning to positive territory there's likely to be continued capacity restraints in the economy," he said.
"I think also selling price expectations are another sign that there could be some inflationary pressure and what that ultimately means is that the Reserve Bank will continue to move interest rates up."
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