Signs of optimism among Australian agribusiness are being tempered by the spectre of rising costs reports the Westpac and Charles Sturt University Agribusiness Index released today.
The national Economic Performance Index (EPI), which measures business performance, employment and investment indicators, was 0.02, the first positive result in 18 months, and represented an improvement on the -0.06 result for the December quarter.
"This result shows that agribusiness is cautiously optimistic about the future," Westpac's chief executive, regional and agribusiness banking, Graham Jennings, said.
The improvement was due to good results in business performance and capital expenditure as well as stable employment levels while climatic factors were also identified as being an important influence.
"This was reflected in the fact that areas most affected by drought or prolonged dry weather in eastern Australia, such as northern Victoria and southern and central New South Wales, recorded lower scores on the index," Mr Jennings said.