CreditorWatch’s Business Sentiment Survey reveals — 6 in 10 business leaders delay major investments as economic uncertainty continues
SYDNEY, Wednesday 21 January 2026 – Economic conditions are prompting Australian businesses to adopt a more cautious approach to growth, according to CreditorWatch’s national Business Sentiment Survey of more than 1,000 business decision makers.
The findings reveal a pragmatic resilience: 63% of leaders are postponing major investments until conditions improve, while 72% say rising costs are constraining their ability to grow.
Shifts in customer behaviour continue to add pressure. 83% of business leaders report changes over the past year, including slower approvals, tighter budgets, longer payment terms and increased price comparison.
Workforce decisions also reflect this caution. More than four in 10 (43%) of leaders do not plan to hire in the next 12 months. Among those expecting to recruit, 66% favour casual or short‑term contractors over permanent employees (34%).
Despite this, confidence remains strong. Three in four (76%) business leaders are optimistic about growth over the next year. The same proportion is actively exploring domestic expansion, while 54% are considering overseas markets.
Younger businesses are driving much of this momentum: 84% of organisations less than five years old are seeking local growth opportunities, compared with 65% of businesses more than 20 years old.
“Business leaders are demonstrating remarkable adaptability in a challenging environment. It’s encouraging to see how many continue to feel positive about the Australian economy over the next year and how many are identifying positive indicators within their own operations,” said CreditorWatch CEO Patrick Coghlan. “While leaders are pacing major expenditure, they’re certainly not standing still. They’re finding opportunities to innovate, expand and deliver value for their customers even as conditions fluctuate.”
Although cautions, investment intentions remain strong and centred on growth. More than 8 in ten (82%) respondents plan to invest in the coming year, with the top focus areas including technology (40%), marketing and customer acquisition (29%), and new products and services (26%).
Growth ambitions vary by sector
The survey highlights meaningful differences across industries. Financial and Insurance Services leaders are the most optimistic, with 89% saying they’re confident about business growth over the next 12 months. They are also the most expansion‑focused, showing the strongest local (87% vs 76% average) and international (73% vs 54% average) growth intent. They are also the least likely to delay major investment (56% vs 63% average).
Construction businesses, on the other hand, remain the most cautious, reporting the weakest growth outlook – with only 67% optimistic about their business growth. Leaders in the sector are also among the most likely to say rising costs are affecting their growth (74% vs 72% average) and among the least likely to be exploring local expansion (71% vs 76% average).
Regional sentiment: confident but varied
Positivity is strong nationwide, though perspectives differ across states and territories:
Customer behaviour changes are most pronounced in smaller markets - TAS/NT/ACT (92%) and SA (87%) - compared with 83% in NSW, 84% in VIC, and 79% in QLD.
Hiring intentions sit at around 6 in ten nationally, peaking in TAS/NT/ACT (68%).
Local expansion appetite is strongest in TAS/NT/ACT (83%) and lowest in QLD (68%). International expansion interest is highest in NSW (59%).
Cost pressures show the highest agreement in TAS/NT/ACT (86%) and the lowest in QLD (67%).
Investment delays are most common in TAS/NT/ACT (69%), WA (68%) and SA (67%).
“The regional differences in this survey make it clear that a one size fits all approach won’t work,” Mr Coghlan said. “From Queensland to Western Australia, every market has its own dynamics. Sustainable growth depends on understanding and supporting these local realities. Our most recent Business Risk Index shows that NSW, Queensland and Victoria have been experiencing the highest business failure rates across the country - which underscores how markedly conditions differ between states.”
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CreditorWatch provides Australian businesses of all sizes with innovative credit management solutions and unique, AI-powered data insights to help them reduce their risk exposure, get paid faster and trade more confidently. Its customers include sole traders and small business operators through to ASX-listed companies, across all industries and regions around the country.
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