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A survey across the Tasman has found more business executives there are concerned about petrol prices than at any other time in the last 16 months.
The Dun and Bradstreet survey found 47 per cent of Australian executives surveyed say petrol prices will be their primary concern in the December quarter.
Dun and Bradstreet spokesman Damian Carmelich says the responses indicate businesses are pessimistic about growth in sales and profits over the quarter.
He says that could mean employment growth will begin to ease.
"As they're seeing their profits squeezed and their sales move downwards, they're looking to recover that margin from somewhere, and the way they're going to do that is by cutting back on any plans they had to employ new staff," he said.
"So importantly at the moment, it's not about laying staff off, but it is saying very clearly that they're not looking to create any new jobs in the December quarter."
The survey also found that 59 per cent of executives in Australia expect to raise their selling prices in the three months to December.
The expectations are signs that inflation will remain a concern for businesses for the rest of the year.
Carmelich says businesses believe they can keep profits up as consumer demand slows by raising prices.
But he says that could change.
"If the economy continues to experience some bumpiness what they may find is that increased competition for the retail dollar will force them to have to alter their plans to raise those prices," he said.
"But at the moment they're expecting to have to use raised selling prices to cover the drop in profit margins."
- RADIO AUSTRALIA
