Key insights from our latest report:

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1: Although businesses report that current trading conditions are still very weak, there are expectations for better economic growth next year.

These expectations are being backed by plans to invest in plant and machinery, as well as digitisation and new technologies.

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2: Last year, over 50% of businesses expressed concern about the level of interest rates, but now only 9% include this among their list of worries.

In particular, the more dovish-than-expected comments from the Reserve Bank have led to a noticeable further retreat in concerns about borrowing costs, which have now fallen to record lows.

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3: For the two and a half years our survey has been running, more businesses have said they plan to cut their inventory levels than raise them.

Now, the net 3% reporting this is the smallest on record, and the trend tells us again that businesses are backing a view of better trading conditions next year. Once inventory holding plans turn net positive, local manufacturers can reasonably anticipate some extra business.