Global financial crisis rocks business confidence in South West Queensland
St.George Bank - Chamber of Commerce & Industry Queensland Pulse Survey of Business Conditions September Quarter 2008
Businesses in South West Queensland hold a grim outlook for the state and national economies according to the latest St.George Bank - Chamber of Commerce & Industry Queensland Pulse Survey of Business Conditions.
Chamber of Commerce & Industry Queensland President, Beatrice Booth, said the drop in business confidence has been primarily driven by the current crisis in financial markets and potential downturn in some of the world's major economies.
"There are real concerns these developments will further undermine domestic consumer and business confidence, leading to lower spending and investment and slower economic growth," Mrs Booth said.
"The survey results indicate 68 per cent of businesses expect conditions to weaken nationally and 48 per cent expect Queensland's economic performance to weaken over the next 12 months."
Despite this pessimistic view, St.George Bank Queensland General Manager, Rhyll Gardner, said while there was no doubt the economic environment had changed compared to 12 months ago, there was no reason for people to panic.
"The Australian economy and banking industry are still relatively strong and for many people in business this can be an opportunity to reflect on their financial approach over the past few years; consolidate and plan for the future," Ms Gardner said.
"We need to remember this is part of a natural financial cycle and things will improve; this time of uncertainty will pass. Smart business will be ready once the change emerges and the climate settles down again."
General business conditions in South West Queensland improved slightly in the September quarter, with the majority of businesses reporting stable trading conditions, however businesses in the region do not expect conditions to continue to recover further over the next three months.
Reflecting the slight recovery in general business conditions, sales & revenue, profitability, employment and average wages all increased marginally over the three months to September 2008. Looking forward to the next three months, all of these performance benchmarks are expected to remain fairly stable.
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. Wages also remain a key constraint on business growth.
The spike in oil prices, which has occurred over the course of this year, has seen transport costs and infrastructure become a major constraint on business growth in the region. Businesses are particularly concerned about the impact sustained high oil prices will have on input and transportation costs and consumer spending.
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David Argus
General Manager - Public Relations & Media
Chamber of Commerce & Industry Queensland
t: 07 3842 2263
m: 0418 523 343