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A survey on business expectations across the Tasman shows there is increased anxiety there over interest rate rises.
The latest Dun and Bradstreet survey for the December quarter reveals the number of Australian executives who are concerned about the effects of rate rises has risen to 39 per cent, the highest level recorded since December 2005.
Duncan Ironmonger from Dun and Bradstreet in Sydney says petrol prices used to top the list of business concerns, but not anymore.
"Interest rates worry retailers particularly because people with mortgages will be required to put more aside into their mortgages and this will leave less for spending," he said.
"Generally, it also increases the cost of borrowing for businesses themselves if they wish to expand their business by getting some more credit from the bank."
The survey has also found sales and profit growth expectations have risen to their highest level in more than two years.
- RADIO AUSTRALIA
