St.George Bank - Chamber of Commerce & Industry Queensland Pulse Survey of Business Conditions
June Quarter 2008: Central Queensland Coast Business Confidence and Conditions strengthen
In contrast to the general state-wide trend, general business conditions on the Central Coast improved in the June 2008 quarter, according to the latest St.George Bank - Chamber of Commerce & Industry Queensland Pulse Survey of Business Conditions, with 52 per cent of businesses reporting stronger conditions.
Reflecting the improvement in general business conditions, sales and revenue, profitability, average wages and employment also increased slightly in the three months to June 2008. As with general business conditions, these performance indicators are expected to stabilise or slightly improve over the coming quarter.
Businesses in the Central Coast region do not have an overly positive view of the outlook for the Australian economy, with one in two businesses expecting national economic conditions to weaken over the next 12 months. They are, however, more upbeat about the prospects for the Queensland economy, with most expecting economic conditions in the state to remain the same or strengthen over the coming year.
The lack of confidence in Australia's economic performance can be linked to high oil prices, interest rates and inflation, with businesses increasingly concerned about the impact these factors will have on input costs, consumer spending and economic growth. Many businesses believe Queensland's exposure to the resources boom will help to reduce the impact these factors have on the state's economy.
The top five major constraints on business growth on the Central Coast are:
- The recruitment and retention of suitably qualified staff
- Transport costs and infrastructure
- Direct wage costs
- Indirect wage costs
- Compliance - IR laws
Unsurprisingly, labour recruitment and retention remains the number one constraint on business growth, with businesses in the region still struggling to find and retain appropriately skilled staff. Reflecting the tight nature of the region’s labour market, wage costs also remain a key constraint on business growth.
Transport costs and infrastructure continue to rank as a major constraint on business growth in the region, reflecting the ongoing importance of this issue to the local community. Businesses are acutely aware of the impact sustained high oil prices will have on input costs, transportation costs and consumer spending.
The compliance burden associated with industrial relations laws is also an important constraint on business growth on the Central Coast, highlighting the need for a simple and flexible national workplace relations system.
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