The results of the April 2010 Australian Chamber of Commerce and Industry (ACCI) Survey of Investor Confidence, published on April 6, have shown that business conditions continued to improve for those polled over the March quarter, with most indicators now in positive territory and expectations in the 'own business conditions', 'sales' and 'profitability' categories now at their highest levels in almost three years.

However, the survey, conducted over the three months to March 2010, and involving 771 respondents, found that the pace of increase in these forward projections has tapered off after a significant rebound in business expectations during the second half of 2009.

The ACCI revealed that expected future levels of investment "fell marginally...suggesting that business investment intentions are expected to continue to decline over the next six months".

It went on to add that:

"Nevertheless, future expectations for national economic conditions, climate for investment, GDP growth, business investment and interest rates are at their highest levels since this survey began in 1998."

The poll flagged up skill shortages as an area of concern amoung the businesses which participated in the survey, revealing that:

"The availability of suitably qualified employees has moved into the top ten constraints on investment for the first time since the December quarter of 2008."

Financial constraints (including charges by banks and other lending institutions, and interest rates) were also cited as a problem by the poll participants.

Commenting on the survey results, Greg Evans, ACCI's Director of Economics and Industry Policy observed that:

“Overall the survey has highlighted that trading conditions and business confidence have improved further over the March quarter, based on further signs of global and domestic economic recovery. However, strong improvement in expectations indicators over the second half of 2009
has began to show signs of plateauing and actual conditions are still significantly below prior projections."

He concluded:

“Weak investment indicators also suggest that businesses remain pessimistic about their future capital expenditure plans in 2010. Difficulties in obtaining credit coupled with higher cost of finance and charges have constrained the ability of small business to invest, expand and employ.”