|
|
|
31 July 2009 Pulse Survey of Business Conditions | June Quarter
> Click to forward this email to a friend or colleague Contact t: 07 3842 2267 | e: policy@cciq.com.au | w: www.cciq.com.au |
|
Queensland Business Confidence Continues to Rise Queensland business confidence in the national economy continued to rise over the June quarter, according to the latest CCIQ Pulse Survey of Business Conditions. CCIQ President, Beatrice Booth, said over one third of businesses now expect national economic conditions to strengthen over the coming year, compared to just 14 per cent in the March quarter 2009. "On the Australian front, it would appear the recent run of better than expected economic news has convinced many businesses that the current downturn will not be as severe or prolonged as originally expected," Mrs Booth said. "There has also been a corresponding and dramatic drop in the proportion of businesses expecting conditions to deteriorate – from 66 per cent in the March quarter to 27 per cent in June quarter." However, Mrs Booth said the outlook for Queensland was not as positive, with Queensland businesses considering the state's economic prospects weaker than those for the wider Australian economy. "This is not surprising given the news on the Queensland economy has been gloomy, with recent State Government forecasts predicting a rough period ahead," Mrs Booth said. "More than 43 per cent of businesses are expecting the state's economy to weaken further over the next 12 months, however, it is encouraging to note however, that this is a significantly smaller percentage than was recorded in the March quarter 2009." Mrs Booth said these results underline the significant challenge the Queensland Government faces in rebuilding confidence in the Queensland economy following the loss of the state's AAA credit rating and the confirmation that the State Budget will be in deficit for a lengthy period of time. "Restoring business confidence in the state economy will be a critical requirement for any sustained economic recovery," Mrs Booth said. "Businesses need to be confident about the state's prospects before they will hire new staff, invest in plant and equipment and expand their activities." As in recent quarters, Queensland businesses believe global economic conditions will be the major influence on both the Australian and Queensland economies over the next 12 months. Unemployment is also expected to become an increasingly important influence on domestic economic performance, with many businesses concerned that the forecast rise in the national and state unemployment rates will adversely impact on consumer spending and confidence. Not surprisingly, businesses are of the view that the actions of the Australian and Queensland Governments will be a major influence on the performance of the economy over the next 12 months. More needs to be done to assist small and medium-sized businesses to survive the current economic slowdown. This can be achieved by reducing regulation, lowering business costs and assisting business to up-skill and understand new workplace relations laws.
Hot Topic – Businesses, Training & the Economic Downturn Businesses continue to recognise the importance of providing education and training to their employees, according to the results of the latest CCIQ Pulse Survey of Business Conditions. This is despite the fact that many have been forced to pare back their training budgets in response to the current economic downturn. "At a time when many businesses are being forced to make some hard decisions about their staffing levels and cost bases, it is not surprising that some areas of training have been impacted. One-third of businesses reported that the tough economic environment had reduced their ability to provide training to their employees." The downturn has also limited the ability a significant proportion of businesses to employ new apprentices and trainees which may have implications for the availability of skilled staff in the future. In a positive development however most businesses indicated that the downturn had not forced them to reduce the number of apprentices and trainees that they currently employ." On another positive note, the majority of businesses intend to provide training to their employees over the next 12 months. This indicates that businesses are aware of the need, if possible, to maintain training during the current downturn as they know will need the skills their employees gain from training in order to take full advantage of the recovery when it occurs. The last thing anyone wants is a repeat of the serious skills shortages we experienced during the recent boom. A number of factors are critically important to the decision to provide training to employees, with the most important being the relevance of the training to the business. The sales levels and profitability of the business are obviously a key determinant in the decision to provide training, with businesses balancing the benefits of training against the financial impacts of providing training (cost and underutilisation of staff due to training). Unsurprisingly, cost is also a key consideration for many businesses when it comes to the provision of training to employees. The majority of businesses surveyed (55 per cent) were of the view that existing financial incentives for employers to allow employees to undertake training were inadequate. Businesses believe that governments need to improve the size of those incentives and to offer incentives for a broader range of training options if they want to successfully encourage employers to provide training for their employees. A more business-friendly approach to training delivery was also considered to be a critical prerequisite to achieving a more skilled workforce.
Chamber of Commerce & Industry Queensland's quarterly Pulse Survey of Business Conditions is the largest and most authoritative snapshot of business sentiment available for Queensland. By way of background:
30 Second Survey: Climate Change The Australian Government's Emissions Trading Scheme (ETS) is an issue that is affecting the Queensland business community now. However, the degree to which Climate Change and the ETS is impacting on business remains largely unknown. To gain a better understanding of this important issue, CCIQ is conducting a 30 second survey. Please spare a moment to complete the eight simple questions. This email was sent to {EMAIL_ADDRESS} from Chamber of Commerce & Industry Queensland Disclaimer and Privacy Policy. Copyright Chamber of Commerce & Industry Queensland 2009. All rights reserved. |
 |
