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ACCI Survey of Investor Confidence

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					Release Date: 7 October 20088




ACCI
Survey of Investor
Confidence


AUSTRALIAN CHAMBER OF
C O M M E R C E A N D I N D U S T RY
                                                                                        ACCI Survey of Investor Confidence

                                                                                                              October 2008




Contents
Summary	                                          3

Constraints	on	Investment	                        4

Own	Business	                                     5

  Own Business Conditions - Current               5
  Own Business Conditions - Expected              5
  Own Sales - Current                             6
  Own Sales - Expected                            6
  Own Profitability - Current                     7
  Own Profitability - Expected                    7
                                                            Foreword
  Expected Level of Activity                      8
  Expected Level of Investment                    8
                                                            The ACCI Survey of Investor Confidence is a national
  Expected Number of Full-Time                              survey undertaken through the Australian Chamber of
  Employees                                       9         Commerce and Industry’s member associations.
  Expected Capacity in Relation to Demand         9
                                                            The survey covers the three months to October 2008
  Actual Sales Compared with the Level                      and had 1,074 respondents.
  Expected Six Months Ago                        10
  Actual Profits Compared with the Level                    This survey covers the following industries: mining,
                                                            manufacturing, construction, retail/wholesale trade,
  Expected Six Months Ago                        10         accommodation, cafes and restaurants, finance/
National	Economy	                                11         insurance/property/business services, and personal
                                                            services.
  National Economic Conditions - Current         11
  National Economic Conditions - Expected        11         For further information contact:
  Climate for Investment - Current               12
                                                            Greg Evans, Director of Industry Policy and Economics,
  Climate for Investment - Expected              12         ACCI on (02)	6273	2311.
  Expected GDP Growth                            13
                                                            Note	on	Interpreting	the	Data
  Expected Business Investment                   13
                                                            An index level of 50.0 (apart from the Constraints on Investment
  Expected Movement in Prices                    14
                                                            section) indicates that there is a balance between those who
  Expected Unemployment Rate                     14         responded positively and negatively. Thus for the most part, a
                                                            level below 50 indicates that conditions are deteriorating, and
  Expected Wages Growth                          15
                                                            conversely, a reading above 50 indicates conditions on average
  Expected Interest Rates                        15         are improving.




                                 A C C I S u r v e y of Investor Confidence                                               2
                                                                                    ACCI Survey of Investor Confidence

                                                                                                         October 2008




Sales, Profits and Conditions Down But
Unemployment Expected to Rise
The October 2008 ACCI Survey of Investor Confidence shows business trading conditions have continued to
deteriorate in the September quarter.

Business’ own conditions and profits are at their lowest level in six years, sales have fallen to below their five
year average, and future expectations for these measures are down further still.

The Expected Number of Full-Time Employees index fell into negative territory for the first time since April 2002,
suggesting that business’ own employment is expected to fall, while at the same time expectations for national
unemployment over the next twelve months have risen to the highest level since this survey began in 1998.

Over the September quarter both Own Business level and National indicators continued to decline and
significantly less optimism is being expressed regarding future business conditions than at the same time last
year. Businesses’ expectations for the national economy and Expected GDP Growth are at their lowest levels
since the survey began in 1998 and significantly lower than at the same time last year. This may be due to
worsening of global economic outlook and domestic credit constraints but may also be a result of business’
higher inflation expectations and input costs, as well as lower profit and sales figures.

These higher costs to business and reduced growth expectations appear to be having a large dampening effect
on firm-specific investment intentions. The Own Business Expected Level of Investment index has declined to
its lowest level since 2001 and the National Expected Business Investment index is at its lowest level since the
survey began in 1998. The National Climate for Investment index also declined further into negative territory
over the September quarter with future expectations also remaining near historic lows.

However, following the September decisions of the Reserve Bank to cut official interest rates for the first time
since 2001, businesses have already factored in the strong possibility for future rate cuts, as evident in the
significant fall in the index of Expected Interest Rates. This may improve investors’ outlook for the next quarter.

ACCI’s quarterly index on Constraints on Investment found that the Availability of Suitably Qualified Employees
remained as the largest constraint on business investment for the seventh consecutive quarter, while government
constraints again featured prominently in the top ten. Business Taxes and Government Charges was the second
most critical investment impediment. Concern about global economic slowdown and slower domestic demand
has moved Insufficient Demand up to the ninth constraint on business investment decisions.




                                  A C C I S u r v e y of Investor Confidence                                        3
                                                                                     ACCI Survey of Investor Confidence

                                                                                                          October 2008

Expectations	for	Own	Business	cont.




CONSTRAINTS	ON	INVESTMENT
The Survey of Investor Confidence seeks information from respondents on the importance of a list of twenty
factors as constraints on the level of investment. The overall, or average, index level for all constraints showed
that the overall constraint on investment remained stable with the index on 39.0 in the October survey.

The list presented below shows the ten most important constraints on business investment and shows that the
current major impediments to investment flow from three main sources: government taxes and regulations, the
labour market, and financial issues such as interest rates and bank charges.

Availability of Suitably Qualified Employees remains the single most binding constraint on investment for the
seventh consecutive quarter. While finding staff still remains a critical concern, Wage Costs and Non-Wage
Labour Costs also presented difficulties, recorded at third and fifth positions respectively.

Business Taxes and Government Charges was the second most important constraint on investment. Government
regulation in general featured prominently in the top ten with State Government Regulation and Federal
Government Regulation ranked sixth and eighth respectively. Overall, the prominent positions of government
regulation and taxes and charges points towards a need for an increased focus on streamlining government
regulation and reducing taxes and charges in order to foster increased investment.

Financial constraints also featured in the top ten in the September quarter. The Level of Interest Rates as a
constraint on investment fell to the fourth position, although the index remains at a high level. This result follows
the RBA decision to cut official interest rates for the first time in seven years in September. Additionally, Charges
by Lending Institutions has remained a critical constraint.

The current slowdown in global and domestic economy has also caused Insufficient Demand and Local
Competition to be among the top ten constraints currently faced by businesses when making investment
decisions.


Top	Ten	Constraints	on	Investment	

1.    Availability of Suitably Qualified Employees (1)
2.    Business Taxes and Government Charges (2)
3.    Wage Costs (4)
4.    Interest Rates (3)
5.    Non-Wage Labour Costs (5)
6.    State Government Regulations (6)
7.    Charges by Leading Institutions (7)
8.    Federal Government Regulations (8)
9.    Insufficient Demand (10)
10.   Local Competition (9)

The figures in brackets show the ranking in the previous survey.



                                      A C C I S u r v e y of Investor Confidence                                     4
                                                                                                                                                                                                                                                                              ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                                   October 2008




OWN	BUSINESS
This section presents an analysis of the assessments business has made about their own firm’s current
performance.

Own Business Conditions - Current
The index of Own Business Conditions - Current, which asks respondents to make a general evaluation of their
own business, fell from 60.9 in the June quarter to 58.3 in the September quarter – the lowest level in 6 years
and more than five points below its five year average of 64.1. However, the index remains positive indicating that
trading conditions were down but not yet critical over the September quarter. The recent persistent declines of
the index indicate that conditions have moderated noticeably since the June quarter of 2007.

                                                                                                                                                                                                                                                                                Oct         Jul	       Oct
                                                                                                                                                                                                                                                                               2007        2008       2008
                                                                                                                   SA               Trend
                   75                                                                                                                                                                                                          75                    Excellent                 4.3%       3.8%       2.0%
                                                                                                                                                                                                                                                     Very Good                24.7%      22.1%      15.7%
                   70                                                                                                                                                                                                          70

                                                                                                                                                                                                                                                     Good                     31.6%      26.1%      30.1%
                   65                                                                                                                                                                                                          65
                                                                                                                                                                                                                                       Index Level
     Index Level




                                                                                                                                                                                                                                                     Satisfactory             32.2%      37.8%      31.7%
                   60                                                                                                                                                                                                          60                    Poor                      5.1%       8.9%      15.4%
                                                                                                                                                                                                                                                     Very Poor                 2.0%       1.3%       3.7%
                   55                                                                                                                                                                                                          55
                                                                                                                                                                                                                                                     Deeply Depressed          0.0%       0.1%       1.4%
                   50                                                                                                                                                                                                          50
                                                                                                                                                                                                                                                     Original                   64.1       61.7       56.7
                        Jan-98
                                  Jul-98
                                           Jan-99
                                                    Jul-99
                                                             Jan-00
                                                                      Jul-00
                                                                               Jan-01
                                                                                        Jul-01
                                                                                                 Jan-02
                                                                                                          Jul-02
                                                                                                                   Jan-03
                                                                                                                            Jul-03
                                                                                                                                     Jan-04
                                                                                                                                              Jul-04
                                                                                                                                                       Jan-05
                                                                                                                                                                Jul-05
                                                                                                                                                                         Jan-06
                                                                                                                                                                                  Jul-06
                                                                                                                                                                                           Jan-07
                                                                                                                                                                                                    Jul-07
                                                                                                                                                                                                             Jan-08
                                                                                                                                                                                                                      Jul-08




                                                                                                                                                                                                                                                     Seasonally Adjusted        64.3       62.0       56.8
                                                                                                                                                                                                                                                     Trend                      65.7       60.9       58.3



Own Business Conditions - Expected
The Own Business Conditions - Expected index fell marginally over the quarter, with the index declining to 58.7
from 59.0. The continued decline of the index has reduced the index to well below the five year average of
62.7.

                                                                                                                                                                                                                                                                                Oct        Jul	       Oct
                                                                                                                  SA            Trend                                                                                                                                          2007       2008       2008
                 75                                                                                                                                                                                                            75
                                                                                                                                                                                                                                                      Improving Rapidly       7.8%       7.2%        3.1%
                 70                                                                                                                                                                                                            70                     Improving Slowly        53.4%     45.9%       45.9%
                                                                                                                                                                                                                                                      No Change               31.5%     25.9%       33.5%
                 65                                                                                                                                                                                                            65
                                                                                                                                                                                                                                    Index Level
   Index Level




                                                                                                                                                                                                                                                      Deteriorating Slowly    7.1%      19.5%       15.8%
                 60                                                                                                                                                                                                            60                     Deteriorating Rapidly   0.3%       1.4%        1.7%

                 55                                                                                                                                                                                                            55
                                                                                                                                                                                                                                                      Original                 65.3       59.5        58.2
                                                                                                                                                                                                                                                      Seasonally Adjusted      66.7       59.1        59.5
                 50                                                                                                                                                                                                            50
                                                                                                                                                                                                                                                      Trend                    65.4       59.0        58.7
                      Jan-98
                                 Jul-98
                                          Jan-99
                                                   Jul-99
                                                            Jan-00
                                                                     Jul-00
                                                                              Jan-01
                                                                                       Jul-01
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                                                                                                                                                                                          Jan-07
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                                                                                                                                                                                                            Jan-08
                                                                                                                                                                                                                     Jul-08




                                                                                                                                                  A C C I S u r v e y of Investor Confidence                                                                                                                  5
                                                                                                                                                                                                                                                                       ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                            October 2008




Own Sales - Current
The index of Own Sales - Current, which shows the rate of growth of sales, declined from 58.0 to 56.0 over the
September quarter. The index is currently more than five points below its five year average of 61.2. However,
the index remains above 50, indicating some continued growth in sales over the September quarter.



                                                                                                                                                                                                                                                                          Oct        Jul	       Oct
                                                                                                                                                                                                                                                                         2007       2008       2008
                                                                                                                SA            Trend
                 75                                                                                                                                                                                                         75                  Excellent                4.3%      3.1%       1.9%

                 70                                                                                                                                                                                                         70                  Very Good               15.2%     15.8%      13.4%

                 65                                                                                                                                                                                                         65
                                                                                                                                                                                                                                                Good                    33.6%     28.8%      26.0%
   Index Level




                                                                                                                                                                                                                                 Index Level




                                                                                                                                                                                                                                                Satisfactory            31.7%     36.2%      36.5%
                 60                                                                                                                                                                                                         60
                                                                                                                                                                                                                                                Poor                    13.4%     14.7%      16.0%
                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                                Very Poor                1.8%      1.1%       3.1%
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                                Deeply Depressed         0.0%      0.2%       3.1%
                 45                                                                                                                                                                                                         45                  Original                 59.7       58.7       54.5
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                                                                                                                Seasonally Adjusted      59.8       58.9       54.7
                                                                                                                                                                                                                                                Trend                    61.1       58.0       56.0




Own Sales - Expected
The index of Own Sales - Expected fell marginally over the quarter, with the trend index down from 58.6 in the
June quarter to 58.2 in the September quarter. The downward movement comes after the all-time high recorded
in the June quarter 2007. However, at this stage the index remains in positive territory indicating that sales are
still expected to expand but at a much moderated pace from mid-2007.

                                                                                                                                                                                                                                                                         Oct        Jul	       Oct
                                                                                                                                                                                                                                                                        2007       2008       2008
                                                                                                                SA            Trend
                 75                                                                                                                                                                                                         75                 Improving Rapidly       8.5%       6.3%        3.9%
                                                                                                                                                                                                                                               Improving Slowly        56.6%     46.7%       39.4%
                 70                                                                                                                                                                                                         70

                                                                                                                                                                                                                                               No Change               28.6%     27.5%       38.2%
                 65                                                                                                                                                                                                         65
   Index Level




                                                                                                                                                                                                                                 Index Level




                                                                                                                                                                                                                                               Deteriorating Slowly    5.9%      18.3%       15.1%
                 60                                                                                                                                                                                                         60                 Deteriorating Rapidly   0.4%       1.1%        3.3%
                                                                                                                                                                                                                                               Original                 66.7       59.7        56.4
                 55                                                                                                                                                                                                         55

                                                                                                                                                                                                                                               Seasonally Adjusted      67.6       58.7        57.1
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                               Trend                    65.1       58.6        58.2
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
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                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                A C C I S u r v e y of Investor Confidence                                                                                                             6
                                                                                                                                                                                                                                                                                             ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                                                  October 2008

Own	Business	cont.




Own Profitability - Current
The index of Own Profitability - Current fell to negative territory for the first time since January 2002, with the
index declining from 50.9 to 48.9 in the September quarter. The index was more than seven points below its
five year average of 56.7. This result indicates that profitability for businesses deteriorated significantly in the
September quarter.


                                                                                                                                                                                                                                                                                                Oct        Jul	       Oct
                                                                                                                                                                                                                                                                                               2007       2008       2008
                                                                                                                        SA                 Trend
                  70                                                                                                                                                                                                                            70                    Excellent               3.5%       2.9%       2.3%

                  65                                                                                                                                                                                                                            65
                                                                                                                                                                                                                                                                      Very Good              12.1%       9.6%       6.4%
                                                                                                                                                                                                                                                                      Good                   26.5%      26.2%      29.4%
                  60                                                                                                                                                                                                                            60
    Index Level




                                                                                                                                                                                                                                                       Index Level




                                                                                                                                                                                                                                                                      Satisfactory           34.9%      37.4%      31.0%
                  55                                                                                                                                                                                                                            55                    Poor                   20.6%      24.0%      21.5%

                  50                                                                                                                                                                                                                            50
                                                                                                                                                                                                                                                                      Very Poor               1.8%       0.0%       5.3%
                                                                                                                                                                                                                                                                      Deeply Depressed        0.6%       0.0%       4.1%
                  45                                                                                                                                                                                                                            45
                                                                                                                                                                                                                                                                      Original                 55.8       47.0       50.8
                       Jan-98
                                Jul-98
                                         Jan-99
                                                   Jul-99
                                                             Jan-00
                                                                       Jul-00
                                                                                 Jan-01
                                                                                           Jul-01
                                                                                                     Jan-02
                                                                                                               Jul-02
                                                                                                                         Jan-03
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                                                                                                                                             Jan-04
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                                                                                                                                                                                               Jul-06
                                                                                                                                                                                                         Jan-07
                                                                                                                                                                                                                   Jul-07
                                                                                                                                                                                                                             Jan-08
                                                                                                                                                                                                                                       Jul-08




                                                                                                                                                                                                                                                                      Seasonally Adjusted      55.8       47.4       50.8
                                                                                                                                                                                                                                                                      Trend                    57.2       50.9       48.9




Own Profitability - Expected
The index of Own Profitability - Expected fell from 54.2 in the June quarter to 53.7 in the September quarter – the
lowest level since October 2001. However, the index remains positive indicating that business still expects profit
to grow in the December quarter, albeit at a slower pace.


                                                                                                                                                                                                                                                                                               Oct        Jul	        Oct
                                                                                                                                                                                                                                                                                              2007       2008        2008
                                                                                                                       SA              Trend
                  70                                                                                                                                                                                                                            70                   Improving Rapidly       7.2%       2.2%        0.8%
                                                                                                                                                                                                                                                                     Improving Slowly        44.9%     40.0%       37.2%
                  65                                                                                                                                                                                                                            65
                                                                                                                                                                                                                                                                     No Change               30.5%     32.8%       36.1%
                                                                                                                                                                                                                                                     Index Level
   Index Level




                  60                                                                                                                                                                                                                            60
                                                                                                                                                                                                                                                                     Deteriorating Slowly    14.8%     22.7%       20.2%
                                                                                                                                                                                                                                                                     Deteriorating Rapidly   2.5%       2.3%        5.5%
                  55                                                                                                                                                                                                                            55                   Original                 59.8       54.3        51.9
                                                                                                                                                                                                                                                                     Seasonally Adjusted      60.5       54.2        52.5
                  50                                                                                                                                                                                                                            50
                                                                                                                                                                                                                                                                     Trend                    58.1       54.2        53.7
                       Jan-98
                                Jul-98
                                         Jan-99
                                                  Jul-99
                                                            Jan-00
                                                                      Jul-00
                                                                                Jan-01
                                                                                          Jul-01
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                                                                                                                                                                                                                                      Jul-08




                                                                                                                                                           A C C I S u r v e y of Investor Confidence                                                                                                                        7
                                                                                                                                                                                                                                                                      ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                           October 2008

Own	Business	cont.




Expected Level of Activity
The index of Expected Level of Activity decreased further over the September quarter with the index declining
to 53.9 from 56.0 in the June quarter after being as high as 63.4 just one year ago. The index is more than six
points below its five year average of 60.3. Despite the fall, the index remains positive indicating some optimism
remains within the business community.


                                                                                                                                                                                                                                                                        Oct        Jul	       Oct
                                                                                                                                                                                                                                                                       2007       2008       2008
                                                                                                                SA            Trend
                 70                                                                                                                                                                                                         70
                                                                                                                                                                                                                                                Much Higher           10.7%      4.9%        2.3%
                                                                                                                                                                                                                                                Somewhat Higher       40.7%     36.1%       36.7%
                 65                                                                                                                                                                                                         65
                                                                                                                                                                                                                                                About the Same        39.8%     40.8%       40.1%
  Index Level




                                                                                                                                                                                                                                 Index Level




                                                                                                                                                                                                                                                Somewhat Lower        6.9%      16.4%       15.5%
                 60                                                                                                                                                                                                         60
                                                                                                                                                                                                                                                Much Lower            1.9%       1.7%        5.4%
                 55                                                                                                                                                                                                         55                  Original               62.9       56.5        53.8
                                                                                                                                                                                                                                                Seasonally Adjusted    63.3       55.4        54.1
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                                Trend                  63.4       56.0        53.9
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




Expected Level of Investment
The index of Expected Level of Investment fell further into negative territory over the quarter, showing that
businesses are anticipating that their investment growth will be lower than current rates of growth. The index
declined from 44.3 to 43.6 in the September quarter and is now well below the five year average of 50.7.


                                                                                                                                                                                                                                                                        Oct        Jul	       Oct
                                                                                                                                                                                                                                                                       2007       2008       2008
                                                                                                                SA                Trend
                 60                                                                                                                                                                                                         60                  Much Higher           5.5%       4.0%        1.6%

                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                                Somewhat Higher       23.7%     22.3%       17.8%
                                                                                                                                                                                                                                                About the Same        52.9%     44.3%       42.5%
                 50                                                                                                                                                                                                         50
   Index Level




                                                                                                                                                                                                                                  Index Level




                                                                                                                                                                                                                                                Somewhat Lower        12.4%     16.7%       23.1%
                 45                                                                                                                                                                                                         45                  Much Lower            5.4%      12.6%       15.0%

                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                                Original               52.9       47.1        42.0
                                                                                                                                                                                                                                                Seasonally Adjusted    52.7       47.4        41.8
                 35                                                                                                                                                                                                         35
                                                                                                                                                                                                                                                Trend                  52.3       44.3        43.6
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
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                                                                                              Jan-02
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                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                    A C C I S u r v e y of Investor Confidence                                                                                                        8
                                                                                                                                                                                                                                                                     ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                          October 2008




Expected Number of Full-Time Employees
The index of Expected Number of Full-Time Employees declined further over the September quarter, falling from
50.1 in the June quarter to 48.7. The index is now in negative territory for the first time since April 2002. The
current index level suggests a worsening in full-time employment over the next six months.



                                                                                                                                                                                                                                                                       Oct        Jul	       Oct
                                                                                                                                                                                                                                                                      2007       2008       2008
                                                                                                                SA            Trend
                 60                                                                                                                                                                                                         60                 Much Higher            1.2%      1.1%        1.6%
                                                                                                                                                                                                                                               Somewhat Higher       23.7%     17.4%       11.4%
                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                               About the Same        69.7%     70.3%       67.9%
   Index Level




                                                                                                                                                                                                                                 Index Level




                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                               Somewhat Lower         4.2%     10.7%       16.1%
                                                                                                                                                                                                                                               Much Lower             1.3%      0.5%        2.9%
                 45                                                                                                                                                                                                         45                 Original                54.8      52.0        48.2
                                                                                                                                                                                                                                               Seasonally Adjusted     54.0      52.1        47.5
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                               Trend                   53.6      50.1        48.7
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




Expected Capacity in Relation to Demand
Expected Capacity in Relation to Demand increased over the quarter from 54.6 to 56.2. The current index level
shows that there exists some additional capacity within the economy to increase output from existing or unused
capacity.


                                                                                                                                                                                                                                                                       Oct        Jul	       Oct
                                                                                                                SA            Trend
                                                                                                                                                                                                                                                                      2007       2008       2008
                 70                                                                                                                                                                                                         70                 More than Adequate    25.0%     25.9%       29.0%

                 65                                                                                                                                                                                                         65                 Adequate              64.8%     60.5%       55.9%
                                                                                                                                                                                                                                               Less than Adequate    10.2%     13.6%       15.1%
                 60                                                                                                                                                                                                         60
   Index Level




                                                                                                                                                                                                                                 Index Level




                                                                                                                                                                                                                                               Original               57.4       56.1        57.0
                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                               Seasonally Adjusted    56.4       55.4        56.0
                 50                                                                                                                                                                                                         50                 Trend                  53.5       54.6        56.2

                 45                                                                                                                                                                                                         45
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                A C C I S u r v e y of Investor Confidence                                                                                                           9
                                                                                                                                                                                                                                                                                             ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                                                  October 2008

Expectations	for	Own	Business	cont.




Actual Sales Compared with the Level Expected Six Months Ago
Sales over the September quarter fell significantly short of projections, with the index of Actual Sales Compared
with the Level Expected Six Months Ago recorded at 43.7. The index has been at consistently low levels since
July 2005.



                                                                                                                                                                                                                                                                                               Oct        Jul	        Oct
                                                                                                                          SA              Trend                                                                                                                                               2007       2008        2008
                  60                                                                                                                                                                                                                               60                  Much Higher           8.0%       3.5%        1.2%
                                                                                                                                                                                                                                                                       Somewhat Higher       23.4%     18.9%       18.8%
                  55                                                                                                                                                                                                                               55

                                                                                                                                                                                                                                                                       About the Same        38.4%     42.8%       33.7%
   Index Level




                                                                                                                                                                                                                                                        Index Level




                  50                                                                                                                                                                                                                               50                  Somewhat Lower        25.5%     28.5%       32.7%
                                                                                                                                                                                                                                                                       Much Lower            4.8%       6.2%       13.6%
                  45                                                                                                                                                                                                                               45
                                                                                                                                                                                                                                                                       Original               51.1       46.2        40.3
                                                                                                                                                                                                                                                                       Seasonally Adjusted    50.1       48.1        39.6
                  40                                                                                                                                                                                                                               40
                                                                                                                                                                                                                                                                       Trend                  47.2       45.1        43.7
                       Jan-98
                                 Jul-98
                                           Jan-99
                                                     Jul-99
                                                               Jan-00
                                                                         Jul-00
                                                                                   Jan-01
                                                                                             Jul-01
                                                                                                       Jan-02
                                                                                                                 Jul-02
                                                                                                                           Jan-03
                                                                                                                                     Jul-03
                                                                                                                                               Jan-04
                                                                                                                                                         Jul-04
                                                                                                                                                                   Jan-05
                                                                                                                                                                             Jul-05
                                                                                                                                                                                       Jan-06
                                                                                                                                                                                                 Jul-06
                                                                                                                                                                                                           Jan-07
                                                                                                                                                                                                                     Jul-07
                                                                                                                                                                                                                               Jan-08
                                                                                                                                                                                                                                         Jul-08




Actual Profits Compared with the Level Expected Six Months Ago
The data on expected versus actual profits showed actual profits continued to fall short of expectations. The
index of Actual Profits Compared with the Level Expected Six Months Ago remained at 40.2 in the September
quarter.

                                                                                                                                                                                                                                                                                               Oct        Jul	        Oct
                                                                                                                           SA                 Trend
                                                                                                                                                                                                                                                                                              2007       2008        2008
                  60                                                                                                                                                                                                                               60                  Much Higher           3.9%       0.4%        1.0%

                  55                                                                                                                                                                                                                               55                  Somewhat Higher       19.1%     15.1%       18.5%
                                                                                                                                                                                                                                                                       About the Same        39.1%     39.9%       33.1%
                  50                                                                                                                                                                                                                               50
    Index Level




                                                                                                                                                                                                                                                         Index Level




                                                                                                                                                                                                                                                                       Somewhat Lower        30.5%     33.1%       33.0%
                  45                                                                                                                                                                                                                               45
                                                                                                                                                                                                                                                                       Much Lower            7.5%      11.5%       14.4%
                  40                                                                                                                                                                                                                               40                  Original               45.4       40.0        39.6
                                                                                                                                                                                                                                                                       Seasonally Adjusted    45.1       41.2        39.4
                  35                                                                                                                                                                                                                               35
                                                                                                                                                                                                                                                                       Trend                  42.2       40.2        40.2
                        Jan-98
                                  Jul-98
                                            Jan-99
                                                      Jul-99
                                                                Jan-00
                                                                          Jul-00
                                                                                    Jan-01
                                                                                              Jul-01
                                                                                                        Jan-02
                                                                                                                  Jul-02
                                                                                                                            Jan-03
                                                                                                                                      Jul-03
                                                                                                                                                Jan-04
                                                                                                                                                          Jul-04
                                                                                                                                                                    Jan-05
                                                                                                                                                                              Jul-05
                                                                                                                                                                                        Jan-06
                                                                                                                                                                                                  Jul-06
                                                                                                                                                                                                            Jan-07
                                                                                                                                                                                                                      Jul-07
                                                                                                                                                                                                                                Jan-08
                                                                                                                                                                                                                                          Jul-08




                                                                                                                                                                  A C C I S u r v e y of Investor Confidence                                                                                                                10
                                                                                                                                                                                                                                                                        ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                             October 2008


                                                                                                                                                                                  NATIONAl	ECONOMy



NATIONAl	ECONOMy
This section presents analysis of the assessments business has made regarding the current state of the national
economy.

National Economic Conditions - Current
The index of National Economic Conditions - Current, which measures business’ evaluation of the general state
of the national economy, fell to 50.8 in the September quarter – the lowest level since January 2002 and more
than 12 points below its five year average of 63.7. Despite the continued decline, the index level remained
marginally positive, showing that trading conditions during the quarter were still relatively sound.

                                                                                                                                                                                                                                                                          Oct         Jul	       Oct
                                                                                                                SA            Trend
                                                                                                                                                                                                                                                                         2007        2008       2008
                 75                                                                                                                                                                                                         75                  Excellent                4.3%       0.9%       0.0%
                 70                                                                                                                                                                                                         70                  Very Good               25.5%      11.7%       8.0%
                 65                                                                                                                                                                                                         65
                                                                                                                                                                                                                                                Good                    34.0%      35.9%      21.7%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 60                                                                                                                                                                                                         60
                                                                                                                                                                                                                                                Satisfactory            30.3%      34.9%      37.5%
                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                                Poor                     5.3%      13.6%      25.2%
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                                Very Poor                0.4%       2.2%       4.7%
                 45                                                                                                                                                                                                         45
                                                                                                                                                                                                                                                Deeply Depressed         0.3%       0.8%       3.0%
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                                Original                 65.2        56.9       49.0
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                                                                                                                Seasonally Adjusted      65.5        57.4       49.3
                                                                                                                                                                                                                                                Trend                    67.2        56.5       50.8



National Economic Conditions - Expected
Businesses heavily discounted the prospects for growth over the next twelve months. The index of National
Economic Conditions - Expected has decreased further into negative territory. The index was recorded at 37.6
for the September quarter after being 39.8 in the June quarter and 55.5 at the same time last year. The index is
currently at its lowest level since the survey began in 1998 and more than 13 points below its five year average
of 51.5.
                                                                                                                                                                                                                                                                         Oct        Jul	        Oct
                                                                                                                SA            Trend
                                                                                                                                                                                                                                                                        2007       2008        2008
                 65                                                                                                                                                                                                         65                 Improving Rapidly       4.0%        2.3%        1.3%
                 60                                                                                                                                                                                                         60                 Improving Slowly        39.1%      20.6%       16.4%
                 55                                                                                                                                                                                                         55                 No Change               34.7%      19.9%       24.4%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 50                                                                                                                                                                                                         50                 Deteriorating Slowly    22.0%      50.8%       52.0%
                 45                                                                                                                                                                                                         45
                                                                                                                                                                                                                                               Deteriorating Rapidly   0.2%        6.3%        5.9%
                                                                                                                                                                                                                                               Original                 56.1       40.5        38.8
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                               Seasonally Adjusted      56.5       40.7        39.0
                 35                                                                                                                                                                                                         35
                                                                                                                                                                                                                                               Trend                    55.5       39.8        37.6
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                A C C I S u r v e y of Investor Confidence                                                                                                             11
                                                                                                                                                                                                                                                                       ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                            October 2008




Climate for Investment - Current
The Climate for Investment - Current index declined further into negative territory, falling from 49.4 to 47.0 over
the quarter. The index level indicates that business became more cautious and investment decisions will likely
be scrutinised very closely before being initiated.

                                                                                                                                                                                                                                                                          Oct        Jul	       Oct
                                                                                                                                                                                                                                                                         2007       2008       2008
                                                                                                                SA            Trend
                 70                                                                                                                                                                                                         70                  Excellent               1.2%       0.5%       0.0%
                 65                                                                                                                                                                                                         65                  Very Good              16.5%       7.1%       5.5%
                 60                                                                                                                                                                                                         60                  Good                   33.0%      25.8%      16.7%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                                Satisfactory           35.3%      33.8%      37.3%
                                                                                                                                                                                                                                                Poor                   12.8%      28.0%      29.3%
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                                Very Poor               1.2%       3.4%       7.9%
                 45                                                                                                                                                                                                         45
                                                                                                                                                                                                                                                Deeply Depressed        0.0%       1.3%       3.3%
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                                Original                 58.9       50.5       45.4
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                                                                                                                Seasonally Adjusted      59.2       50.9       45.7
                                                                                                                                                                                                                                                Trend                    58.3       49.4       47.0




Climate for Investment - Expected
The index of Climate for Investment - Expected in the Australian economy improved marginally over the quarter,
with the index rising from 39.6 in the June quarter to 40.5 in the September quarter. This shows that business is
expecting that economy-wide conditions for investment to improve marginally over the next quarter.



                                                                                                                                                                                                                                                                         Oct        Jul	       Oct
                                                                                                                SA            Trend
                                                                                                                                                                                                                                                                        2007       2008       2008
                 65                                                                                                                                                                                                         65                 Improving Rapidly       3.7%       1.4%        0.8%
                 60                                                                                                                                                                                                         60
                                                                                                                                                                                                                                               Improving Slowly        31.7%     17.0%       13.1%
                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                               No Change               44.8%     36.3%       39.1%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                               Deteriorating Slowly    17.9%     39.5%       40.4%
                 45                                                                                                                                                                                                         45
                                                                                                                                                                                                                                               Deteriorating Rapidly   1.8%       5.9%        6.6%
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                               Original                 54.4       42.1        40.3
                 35                                                                                                                                                                                                         35
                                                                                                                                                                                                                                               Seasonally Adjusted      54.8       42.4        40.6
                 30                                                                                                                                                                                                         30
                                                                                                                                                                                                                                               Trend                    52.3       39.6        40.5
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




                                                                                                                                                A C C I S u r v e y of Investor Confidence                                                                                                            12
                                                                                                                                                                                                                                                                                  ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                                       October 2008




Expected GDP Growth
Businesses have again revised down their expected GDP growth rates during the September quarter indicating
that GDP growth over the next year would be significantly slower than the current annual growth rate. The index
of Expected GDP Growth declined from 39.0 to 36.3 over the quarter – the lowest level since the survey began
in 1998.
                                                                                                                                                                                                                                                                                    Oct        Jul	       Oct
                                                                                                                   SA            Trend                                                                                                                                             2007       2008       2008
                 60                                                                                                                                                                                                               60
                                                                                                                                                                                                                                                            Much Higher           0.4%       0.4%        0.2%
                 55                                                                                                                                                                                                               55
                                                                                                                                                                                                                                                            Somewhat Higher       32.5%     15.6%       11.2%
                 50                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                            About the Same        47.2%     38.1%       28.9%
                                                                                                                                                                                                                                       Index Level
   Index Level




                 45                                                                                                                                                                                                               45                        Somewhat Lower        19.4%     40.1%       53.6%
                 40                                                                                                                                                                                                               40                        Much Lower            0.6%       5.8%        6.0%
                                                                                                                                                                                                                                                            Original               53.2       41.2       36.5
                 35                                                                                                                                                                                                               35

                                                                                                                                                                                                                                                            Seasonally Adjusted    54.0       40.7       37.1
                 30                                                                                                                                                                                                               30
                                                                                                                                                                                                                                                            Trend                  53.0       39.0       36.3
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                    Jul-00
                                                                              Jan-01
                                                                                        Jul-01
                                                                                                 Jan-02
                                                                                                          Jul-02
                                                                                                                   Jan-03
                                                                                                                            Jul-03
                                                                                                                                     Jan-04
                                                                                                                                              Jul-04
                                                                                                                                                       Jan-05
                                                                                                                                                                Jul-05
                                                                                                                                                                         Jan-06
                                                                                                                                                                                  Jul-06
                                                                                                                                                                                           Jan-07
                                                                                                                                                                                                    Jul-07
                                                                                                                                                                                                             Jan-08
                                                                                                                                                                                                                      Jul-08




Expected Business Investment
The index of Expected Business Investment, which measures business expectations for investment growth
nationally for the next twelve months, continued to decline. The index fell from 36.4 to 35.3 in the September
quarter, its lowest level since this survey began in 1998. This decline indicates that business expect aggregate
investment growth to decline in line with their less confident rating for the overall investment climate.

                                                                                                                                                                                                                                                                                    Oct        Jul	       Oct
                                                                                                                    SA               Trend                                                                                                                                         2007       2008       2008
                 60                                                                                                                                                                                                                60
                                                                                                                                                                                                                                                            Much Higher            2.8%      2.6%        1.6%
                 55                                                                                                                                                                                                                55
                                                                                                                                                                                                                                                            Somewhat Higher       32.1%     13.9%       11.9%
                 50                                                                                                                                                                                                                50                       About the Same        42.7%     28.5%       29.0%
                                                                                                                                                                                                                                              Index Level
   Index Level




                 45                                                                                                                                                                                                                45                       Somewhat Lower        20.9%     45.0%       43.5%

                 40                                                                                                                                                                                                                40
                                                                                                                                                                                                                                                            Much Lower             1.5%     10.0%       14.0%
                                                                                                                                                                                                                                                            Original               53.5       38.5        35.9
                 35                                                                                                                                                                                                                35
                                                                                                                                                                                                                                                            Seasonally Adjusted    53.3       28.3        35.8
                 30                                                                                                                                                                                                                30
                                                                                                                                                                                                                                                            Trend                  50.3       36.4        35.3
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                           Jan-00
                                                                     Jul-00
                                                                               Jan-01
                                                                                         Jul-01
                                                                                                  Jan-02
                                                                                                           Jul-02
                                                                                                                     Jan-03
                                                                                                                              Jul-03
                                                                                                                                       Jan-04
                                                                                                                                                Jul-04
                                                                                                                                                         Jan-05
                                                                                                                                                                  Jul-05
                                                                                                                                                                            Jan-06
                                                                                                                                                                                     Jul-06
                                                                                                                                                                                              Jan-07
                                                                                                                                                                                                       Jul-07
                                                                                                                                                                                                                Jan-08
                                                                                                                                                                                                                         Jul-08




                                                                                                                                                   A C C I S u r v e y of Investor Confidence                                                                                                                    13
                                                                                                                                                                                                                                                                     ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                          October 2008

Expectations	for	the	National	Economy	cont.




Expected Movement in Prices
The index of Expected Movement in Prices continued to moderate after rising significantly to January 2008. The
index now stands at 57.5 after peaking at 66.5 in the December quarter 2007. The prices data indicates that
business is continuing to factor inflation into business decision making.


                                                                                                                                                                                                                                                                       Oct        Jul	        Oct
                                                                                                                SA            Trend                                                                                                                                   2007       2008        2008
                 80                                                                                                                                                                                                         80                 Much Higher            3.8%     10.9%        2.5%
                 75                                                                                                                                                                                                         75                 Somewhat Higher       65.0%     49.2%       40.1%
                 70                                                                                                                                                                                                         70                 About the Same        29.4%     29.4%       44.7%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 65                                                                                                                                                                                                         65
                                                                                                                                                                                                                                               Somewhat Lower         1.8%      9.5%       12.2%
                                                                                                                                                                                                                                               Much Lower             0.0%      1.0%        0.5%
                 60                                                                                                                                                                                                         60
                                                                                                                                                                                                                                               Original               67.3       64.9        58.0
                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                               Seasonally Adjusted    66.0       63.2        57.0
                 50                                                                                                                                                                                                         50                 Trend                  66.0       60.7        57.5
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
                                                                                                                                                                                                                   Jul-08




Expected Unemployment Rate
The index of Expected Unemployment Rate rose to 67.4 in the September quarter – the highest level since the
Survey began in 1998. The index level suggests that business believes the unemployment rate will increase
further over the next twelve months.


                                                                                                                                                                                                                                                                       Oct        Jul	       Oct
                                                                                                                SA            Trend                                                                                                                                   2007       2008       2008
                 70                                                                                                                                                                                                         70                 Much Higher           1.6%      10.1%       11.0%
                 65                                                                                                                                                                                                         65                 Somewhat Higher       26.1%     51.2%       53.7%
                 60                                                                                                                                                                                                         60                 About the Same        61.2%     32.2%       26.9%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 55                                                                                                                                                                                                         55
                                                                                                                                                                                                                                               Somewhat Lower        9.3%       5.4%        7.5%
                                                                                                                                                                                                                                               Much Lower            1.9%       1.1%        0.8%
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                               Original               54.0       66.0        66.6
                 45                                                                                                                                                                                                         45
                                                                                                                                                                                                                                               Seasonally Adjusted    54.5       66.3        67.2
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                               Trend                  55.8       65.2        67.4
                      Jan-98
                               Jul-98
                                        Jan-99
                                                 Jul-99
                                                          Jan-00
                                                                   Jul-00
                                                                            Jan-01
                                                                                     Jul-01
                                                                                              Jan-02
                                                                                                       Jul-02
                                                                                                                Jan-03
                                                                                                                         Jul-03
                                                                                                                                  Jan-04
                                                                                                                                           Jul-04
                                                                                                                                                    Jan-05
                                                                                                                                                             Jul-05
                                                                                                                                                                      Jan-06
                                                                                                                                                                               Jul-06
                                                                                                                                                                                        Jan-07
                                                                                                                                                                                                 Jul-07
                                                                                                                                                                                                          Jan-08
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                                                                                                                                              A C C I S u r v e y of Investor Confidence                                                                                                            14
                                                                                                                                                                                                                                                                     ACCI Survey of Investor Confidence

                                                                                                                                                                                                                                                                                          October 2008

Expectations	for	the	National	Economy	cont.




Expected Wages Growth
The index of Expected Wages Growth decreased further over the quarter with the index now standing at 57.0
compared to 59.6 in the previous quarter. It is important to note that this expectation is for economy-wide wages
growth and not firms’ own payrolls; however, there is likely a strong link between firms’ own negotiations and
views about national wage movements.


                                                                                                                                                                                                                                                                       Oct        Jul	       Oct
                                                                                                                SA            Trend                                                                                                                                   2007       2008       2008
                 70                                                                                                                                                                                                         70                 Much Higher           4.4%       6.0%        2.0%
                 65                                                                                                                                                                                                         65                 Somewhat Higher       42.7%     45.3%       27.3%
                 60                                                                                                                                                                                                         60                 About the Same        47.2%     44.2%       58.9%
                                                                                                                                                                                                                                 Index Level
   Index Level




                 55                                                                                                                                                                                                         55                 Somewhat Lower        5.4%       4.6%       11.6%
                                                                                                                                                                                                                                               Much Lower            0.4%       0.0%        0.2%
                 50                                                                                                                                                                                                         50
                                                                                                                                                                                                                                               Original               61.3       62.0       54.8
                 45                                                                                                                                                                                                         45
                                                                                                                                                                                                                                               Seasonally Adjusted    62.1       61.7       55.5
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                               Trend                  60.1       59.6       57.0
                      Jan-98
                               Jul-98
                                        Jan-99
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                                                                                                                                                                                                          Jan-08
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Expected Interest Rates
The index of Expected Interest Rates, which asks business about their twelve month interest rate expectations,
showed that business has started to factor in the strong possibility of further interest rate reductions. The index
has declined from 60.4 in the June quarter to 45.1 in the September quarter - the lowest level since October
2001 and the index was more than 20 points below its five year average of 66.0.

                                                                                                                                                                                                                                                                       Oct        Jul	       Oct
                                                                                                                SA            Trend                                                                                                                                   2007       2008       2008
                 80                                                                                                                                                                                                         80
                                                                                                                                                                                                                                               Much Higher            7.3%     10.4%        1.4%
                 75                                                                                                                                                                                                         75
                 70                                                                                                                                                                                                         70                 Somewhat Higher       80.9%     59.5%       11.9%
                 65                                                                                                                                                                                                         65
                                                                                                                                                                                                                                               About the Same         9.4%     21.7%       23.2%
                 60                                                                                                                                                                                                         60
                                                                                                                                                                                                                                 Index Level
   Index Level




                 55                                                                                                                                                                                                         55                 Somewhat Lower         1.6%      7.5%       63.0%
                 50                                                                                                                                                                                                         50                 Much Lower             0.8%      0.8%        0.5%
                 45                                                                                                                                                                                                         45
                 40                                                                                                                                                                                                         40
                                                                                                                                                                                                                                               Original               73.1       67.8        37.7
                 35                                                                                                                                                                                                         35                 Seasonally Adjusted    73.7       65.2        38.0
                 30                                                                                                                                                                                                         30
                                                                                                                                                                                                                                               Trend                  72.6       60.4        45.1
                      Jan-98
                               Jul-98
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                                                                                                                                              A C C I S u r v e y of Investor Confidence                                                                                                            15

				
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Description: ACCI Survey of Investor Confidence