The nation's leading business lobby group does not expect Australia to fall into recession despite a traumatic global financial environment.
Local business was facing a very difficult period at the moment, the Australian Chamber of Commerce and Industry (ACCI) said.
"In fact in 2008, Australian business has been run over by two large trucks," ACCI director of industry policy and economic Greg Evans told reporters in Canberra.
"Firstly the domestic economic slowdown and now, perhaps even more seriously, is international market financial instability."
But Mr Evans does not expect the economy to sink into recession.
"We still believe the economic fundamentals in Australia are relatively strong.
"If you look at our budget surplus position, if you look at our regulatory settings, and if you look at the strength of our export sector, these are all still strong, and we would not expect a recession.
"Indeed we concur with the official forecast that the economy will not go into recession."
Mr Evans was releasing ACCI's survey of investor confidence for the September quarter, which showed business conditions and profits at their lowest level in six years, sales falling below their five-year average, and that expectations for these measures still have further to fall.
"It does show deteriorating trading conditions over the September quarter and in particular it builds on the trends of a deteriorating outlook from the previous quarters," he said.
"It does show deteriorating business conditions over the next 12 months and a very pessimistic view.
"In particular, employers are looking at deteriorating conditions in employment over the next 12 month period.
The survey showed business conditions fell to a trend index of 58.3 in the September quarter from 60.9 in the previous quarter and below its five-year average of 64.1.
Expected business conditions fell to an index of 58.7 from 59.0.
