Labour markets are showing increasing evidence of an easing in wage pressures, and recent
declines in business confidence may prompt a tougher stance by businesses in wage negotiations.
Although there has been a noticeable
lift in business confidence over the past six months or so, manufacturing production has shown no growth over the past year.
In another survey, the IFO Institute said Friday that the German economy doesn't risk overheating and has more room for growth, despite a small
drop in business confidence.
Domestically, a higher profit share (facilitated by wage restraint), and a more competitive exchange rate, were associated with a very bullish
trend in business confidence and investment.
The improvement in the economy has led to a marked pick -
up in business confidence and profits, as well as a recovery in business investment (Graph 4).
According to the NAB business survey, there has been a moderate decline in firms» near - term hiring intentions over the past six months, occurring alongside the more general
deterioration in business confidence.
The outlook for corporate profits is likely to receive a boost from the lower Australian dollar, the impact of lower interest rates and a
revival in business confidence after the federal election, says UBS strategist David Cassidy.
«Indeed, our efforts at restoring business confidence are beginning to yield positive results, as confirmed by the AGI Business Barometer, showing a consistent
rise in business confidence throughout this year.
In its business outlook survey last week, the Bank of Canada observed a
divide in business confidence across the country as low oil prices weigh on the outlook for some regions more than others.
A double - dip recession in the UK has put only a minor
dent in business confidence at major law firms, with four out of five partners predicting income growth over the next 12 months.
«While the U.S. continues to lag, Canada has made significant
strides in both business confidence and the labour market, which are integral drivers of recovery in office leasing market fundamentals,» says Bill Argeropoulos, vice-president and director of research (Canada) for Avison Young.
Law firms face a rocky year thanks to economic uncertainty and a
drop in business confidence, a survey of the UK's top 100 firms shows.
In addition, the Japanese economy continues in a cyclical upswing, with an easing in the rate of price deflation and improvements
in business confidence.