Australian business leaders feel good about the economy, even against challenges with costs and labour.
Executives at midsize businesses across Australia believe the remainder of 2022 will foster growth. Our J.P. Morgan Business Leaders Outlook: Australia surveyed companies with revenues between AU$20 million and AU$2 billion and found that business leaders remain resilient. Australian sentiment slightly outpaces German optimism and far outpaces U.S. optimism of business leaders in J.P. Morgan surveys taken around the same time.
"Mid-cap businesses are very focused on absorbing cost inflation — often driven by supply chain issues and labour shortages. Management of these issues can be tricky where there are fewer capital sources available, particularly in certain industries where raising equity and/or debt is less straightforward given current market conditions. However, business leaders remain resilient and optimistic about future growth, as our survey results found — perhaps partly inspired by the recent election."
The survey was fielded as Prime Minister Anthony Albanese took office, during the third month of the war in Ukraine and with COVID-19 still a prevalent factor. More than half of Australian business leaders responded that they expect the recent election to positively impact their companies.
Australian businesses face many operational challenges, with rising prices and labour concerns topping the list. Business leaders also say supply chain issues remain a top concern.
Graphic: Percentage Table
Top 3 Challenges Companies Are Facing
Rising Prices: 27%
Labour (shortage and cost): 27%
Ongoing supply chain issues: 18%
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