More businesses plan to increase their asset base this quarter compared to the first quarter of 2017 despite ongoing funding constraints, according to the latest Alleasing Equipment Demand Index (the Index).
This quarter, a total of 30.6 per cent of Australian businesses surveyed plan to increase their asset base. This is an increase of 5.0 per cent compared to the previous report in March where only 25.6 per cent of businesses cited intentions to increase their asset base.
Those who suggest they will increase their asset base intend to do so by 8.8 per cent this quarter, which compares with a figure of 6.5 per cent in the previous report.
These findings have shown that despite a turbulent 2016, the Australian economy is still on track for growth. Our previous research (March quarter) found many businesses were cautious when making any large financial decisions as a result of Brexit and the Trump presidency. However, this quarter businesses are more confident regarding financial decisions and are more positive about the local and global economy.