Pulse Survey Results March QTR - COVID-19 One Year On: Pandemic 'Exit Plan' Crucial to Cure Economy
Less than one fifth of Queensland businesses have fully recovered since the start of the pandemic as the state grapples with “on again, off again” restrictions and border confusion, new figures show.
The Chamber of Commerce and Industry Queensland (CCIQ) revealed the results of its latest Pulse Survey at today’s Media Club event, where CEO Stephen Tait warned growing business confidence could fizzle fast if the State Government failed to deliver a long-term vision within its next budget.
The CCIQ Pulse Survey for March showed just 16 per cent of Queensland businesses had made a full recovery since the first COVID-19 outbreak 12 months before.
Despite this, confidence has been restored - measuring four times higher than the previous year. Most respondents said the vaccine roll out was the only factor driving improved confidence following the conclusion of key stimulus measured with the full weight of the lasting implications of COVID-19 now resting on the shoulders of business.
One sector that has bounced back is manufacturing, with 82% anticipating equal or stronger turnover into the future as they sourced locally made Queensland products to offset international disruptions.
CCIQ General Manager for Policy and Advocacy Amanda Rohan said this was a “line in the sand moment” for the government, to accelerate opportunities for sectors like manufacturing, while ensuring the 84 per cent of businesses still struggling to find their feet are not left behind.
She said that for the upcoming State Budget, the success of the vaccine roll out and a clear framework for dealing with COVID-19 hotspots and lockdowns were crucial to build business confidence and unlock economic opportunities in the future.
“What we need is a clear health and economic roadmap to ensure a smooth way out of the pandemic. Businesses want know how we’ll reopen to the rest of the country, and indeed the rest of the world, without having to deal with snap lockdowns,” Ms Rohan said.
“Uncertainty has continued to stunt business confidence, meaning business owners aren’t sure whether to invest in equipment and new technologies, or employ new staff that will grow their business.”
Ms Rohan urged the government to address the issues that could transform the state’s future for generations to come.
“This is the first serious State Budget for a four-year term government. We’re asking them deliver a plan for Queensland: to transform our economy, diversify our regional economies and boost resilience,” Ms Rohan said.
“Confidence was low before the pandemic so it won’t suffice to simply return to a ‘business as usual’ budget.
“We need progressive policies to incentivise innovation and sustainable practice, to fuel our economy for the long term.”
Pulse Survey key stats (March quarter ’21)
- Just 16 per cent of Queensland businesses have recovered since the start of the pandemic
- However 43 per cent of survey respondents believed the economy would perform stronger over the next 12 months, 32 per cent believed it would be the same and 30 per cent felt it would be weaker. This time last year 87 per cent of respondents believed the economy would be weaker.
- The top thing driving business confidence was vaccination
- 41 per cent of businesses said their business had performed stronger over the past three months (March quarter ‘21) compared with the previous three (December quarter ‘20)
- 36 per cent said operating costs had increased over the past three months while 62 per cent said they had stayed the same
- When stimulus ends: 21% of businesses were planning to make cuts to capital expenditure, 24% said they would adjust staffing levels.
- Insurance premium costs, retraining and recruiting and the complexity of tax compliance remained top constraints on business growth
For interview and media queries please contact
SARAH ORR
Communication Manager
0401 044 292 || 07 3180 3666
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Click here to read our full Pulse Report for the March Quarter