Australian Firms Delay Spending on Cost Pressures, Survey Shows

Australian businesses are holding off on major investments until economic uncertainty eases, according to a new report, as renewed inflationary pressures raise the risk the Reserve Bank may be forced to pivot to hiking interest rates.

Almost two-thirds of executives say they are pausing spending until conditions improve, CreditorWatch Pty Ltd.’s Business Sentiment Survey showed Wednesday, while 72% say rising prices are inhibiting growth. The cautious outlook is flowing through to hiring, with 43% of firms polled not planning to recruit in the next 12 months.