Mid-market business puts investment plans on hold

The business outlook among Australia's mid-market businesses fell over the past six months, according to a new survey.

GE Capital surveyed 5000 chief financial officers of companies generating revenues of AS$10 million to $250 million a year and found that current conditions had weakened over the past six months and future expectations were down.

CFOs said falling demand had led their businesses to shift away from growth strategies, such as investing in the business. This is not good news for lenders.

In a number of industries, CFOs said they were competing for fewer customers.

GE launched its biannual survey last October, based on survey data supplied by DBM Consultants. It found that while mid-market companies were gloomy, their outlook was more positive than that of large companies, SMEs or micro-businesses.

Respondents said their biggest concern was with the economy, followed by the challenges of growing revenue and managing costs.

The big economic issue was the introduction of carbon pricing and its impact.

GE Capital's chief financial officer, Mark Toohey, said the group had decided to focus on the mid-market because it was relatively unexplored.