Business confidence moves up but wages are unlikely to follow

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Business leaders' confidence in the economy is on the rise, boosted by the prospect of tax cuts and lower interest rates, but it is unlikely to translate into higher wages for their workforces | swrighteconomy

Business leaders' confidence in the economy is on the rise, boosted by the prospect of tax cuts and lower interest rates, but it is unlikely to translate into higher wages for their workforces.

But the latest survey showed a spike in confidence, with more business leaders upbeat than pessimistic about the coming year.While a majority believed trading conditions were weaker than a year ago, most now think that there will be a lift, with many expecting stronger sales that will require an increase in their total staff.

"There is good reason to believe this uplift across Australia's mid-sized organisations will positively translate into a stronger economy over the second half of 2019."Firms in Victoria are the most pessimistic while more firms in NSW expect a softer economy than an improving one over the next 12 months.

 

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swrighteconomy Business is on the rise because Interest rates are so low! Why compare Apples with Pears ?

swrighteconomy When labour starts generating more revenue because it works more efficiently it might be worth a pay rise. Or it can rely on supply constraints.

swrighteconomy Just higher wages for them.

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