Access to business credit is critical to continuing Australia's resurgence, with signs the impact of tighter lending conditions  are being felt by many firms.

Sixteen countries around the globe have had their country ratings downgraded since the start of 2010, demonstrating that economic and commercial risk are still prevalent despite the global recovery. However, the continuing improvement in the local macroeconomic environment has resulted in Australia's risk trend being upgraded - the nation has also been rated one of the safest countries in which to invest globally.

The strong economic recovery and positive company reporting season is hiding a deep structural weakness for many Australian firms as new data reveals nearly half of all companies operated with negative cash flow throughout the last financial year. A concern for shareholders and creditors is that the failure rate for firms with negative cash flow is 213 percent higher than for those operating with a positive cash position. These are just two findings from new research conducted by Dun & Bradstreet.

The risk of rising inflation impacting the Australian economy appears to be declining with only a net seven percent of Australian firms expecting to raise their prices in the March quarter of 2010. In other positive signs for the business outlook expectations for sales and profits also improved.

Solid performance in the lead-up to the global crisis left Australia's top private firms well placed to weather the storm and they are expected to take full advantage of the opportunities the recovery presents, driving the nation's growth in the months ahead, according to a new D&B report.

The drag on growth from the drawdown in inventories appears to be coming to an end, with Australian firms planning a significant re-stocking of inventories and expecting a boost in sales in the months ahead. However despite this promising outlook, the improvement comes off a low comparative base, with expectations measured against the December 2008 quarter, Australia's first quarter of negative economic growth in eight years.

Despite a marginal improvement in sentiment, Australia's business executives remain downbeat about the local business outlook. Expectations for sales, profits, employment, inventories and capital investment all remain in negative territory indicating that further challenges lie ahead.

Recent data indicating a slowdown in the pace of economic deceleration should not be interpreted as the start of a global recovery. A new report released today by Dun & Bradstreet states that the outlook for the world economy over 2009-10 remains poor and the downside risk to Australia remains considerable as a consequence.

While the downturn hit the transport industry about six months later than most sectors, the slowdown in domestic and international trade is now buffeting transport and logistics companies.

The SmartCompany Dun & Bradstreet Industry Growth List for the recruitment industry shows that employment services are suffering under skyrocketing unemployment, but are surviving by changing their focus.

Australia's economic outlook continues to worsen as executives' expect a further deterioration in business conditions and performance in the forthcoming June quarter.