The third quarterly Aus tralian Mining Business Sentiment Survey has shown that mining profession als are still hesitant raise their business spending, despite con tinued optimism that the sector is recovering.
The survey revealed that 68.8% of respondents were ei ther very optimistic or optimi stic about the future of the indus try, up from 65.7% in July 2009.
Nevertheless, 33.8% of in dustry professionals said they would not spend anything over the next three months, com pared to only 22.4% in July.
Similarly, 26% of the Octo ber respondents said they would spend between $20,000 and $100,000, compared to 33.6% in July, while only 1.3% said they would spend between $500,000 and $1 million, down from 9% in July.
Spending above $1 million also dropped from 13.4% to 11.7%.
However, the number of industry professionals planning to make mid-range investments between $100,000 and $500,000 grew to 27.3% from 21.6%.
Job cuts and redundancies continued to decrease, with only 31.2% of respondents indicat ing there have been job cuts at their workplace over the last month, compared to 44.8% in July and 53.1% in April.
The survey revealed that the instability of the economy was still the overwhelming issue affecting operations, although it had dropped from 35.8% in July and 43.5% in April to 31.2% in October.
More than 12,000 sub scribers to MINING DAILY, Australian Mining’s daily mining news service, were asked to complete the Sentiment Survey over two weeks from 1 October.