Lower interest rates don't tempt business

Last month's interest rate cuts have had little impact on business plans to borrow. Among companies surveyed by Dun & Bradstreet last month about their outlook for the June quarter, only 19 per cent said they planned to apply for new credit.

D&B said there had been almost no movement in borrowing intentions over the past 12 months. In February last year 18 per cent of companies surveyed said they planned to apply for new credit.

Companies said they were concerned about slackening demand for their products and services, increased competition from online sellers based overseas, a lack of skilled labour and higher operating costs.

Twenty-two per cent of companies said they planned to increase their level of capital investment, while 70 per cent said they would maintain the same level of investment and seven per cent said they would increase their investments.

Dun & Bradstreet chief executive Gareth Jones said in a statement: "The relatively upbeat mood that was evident among a number of sectors at the end of last year and into January appears to have faded."