Business confidence reached record highs in October, and the industry is finally feeling optimistic.
Business confidence has reached record highs in October, building on the extraordinary peak achieved following the September federal election.
Roy Morgan Research’s latest Business Confidence survey revealed the highest level of business confidence since the survey began in December 2010.
The finance and insurance industries in particular saw a massive leap in confidence, reaching the highest rating on record. Small and micro businesses also reported the highest levels of business confidence since early 2011.
Nigel Smith, Director of Business Research, Roy Morgan Research says the continued confidence growth reflects both business approval for the change in Government and a more general improvement in business performance.
“While sources such as the Reserve Bank appear to forecast the next 12 months to be particularly tough for Australian businesses, businesses themselves do not appear to share this pessimism.”
For the first time since April 2011 the proportion of Australian businesses reporting that they are better off now than at the same time last year was higher than the proportion reporting they were worse off, with 28.2% better off and 27.7% worse off.
The proportion of businesses expecting Australia to have good times financially in the next 12 months also rose to a new record high of 76.7%, while those expecting bad times fell to a new record low of 23.3%.
All States reported an increase in Business Confidence from September, with Queensland, South Australia and Tasmania all reporting the highest values recorded since this series began. The largest increases in Business Confidence were reported in Queensland (up 8.7 points to 133.1) and NSW (up 8.1 to 131.5); the lowest reported increases were in Tasmania (up 2.5 to 126.3) and Victoria (up 2.9 points to 127.8).
Are you confident in how your business will fare in the near future? What do you think the change in government has done for business owners? Share your thoughts below.
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