South West Queensland business confidence continues to rise
Chamber of Commerce & Industry Queensland Pulse Survey of Business Conditions June Quarter 2009
31 July
Business confidence in South West Queensland gained momentum over the June quarter, according to the latest CCIQ Pulse Survey of Business Conditions.
Regional Chair, Ian Sainsbury, said confidence levels have lifted off their historical lows, with over 37 per cent of South West Queensland businesses now expecting national economic conditions to improve over the next 12 months.
"On the national 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," Mr Sainsbury said.
"Closer to home, South West Queensland businesses consider the state's economic prospects are not as strong as those for the wider Australian economy, with only 26 per cent of businesses forecasting state economic conditions to improve.
"This is not surprising given the news on the Queensland economy has been gloomy, with recent State Government forecasts predicting a rough period ahead."
Mr Sainsbury said South West Queensland businesses continue to believe global economic conditions and unemployment will both be major influences on the domestic economy over the coming year.
"Given the fragile state of the Australian and Queensland economies, many businesses in the region are concerned the forecast rise in national and state unemployment rates may undermine the recovery in consumer spending and confidence which has occurred over the last couple of months," Mr Sainsbury said.
Consistent with the recovery in business confidence, most of the major indicators - sales & revenue, profitability, and capital expenditure – have improved over the three months to June 2009. There was some softening in the region's employment market, however it still remains fairly tight.
The general strengthening of conditions is a welcome development, although the trend will need to continue over the rest of 2009 if the indicators are to return to satisfactory levels. At this stage, the region's businesses are confident that most of the key indicators will improve further over the coming months. Sales & revenue is however forecast to soften slightly.
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