Powered by MOMENTUM MEDIA
subscribe to our newsletter

Confidence grows among businesses

Business confidence rose in February due to increased confidence about performance and prospects, according to Roy Morgan Research.

Following a combined decline of 8.7 percentage points from November to January, the latest figures from Roy Morgan show a 2.7 percentage point increase in business confidence in February.

The research found 44 per cent of businesses now expect business to improve over the next 12 months and only 16.4 per cent (down 5.2 per cent) expect conditions will be worse off.

There was also increased confidence in comparing the business’ performance, with 36.1 per cent (up 9.6 per cent) now feeling they are better off than a year ago, while only 32.2 per cent think they are not.

This increase in business confidence comes off the back of the best fortnight of the year for the All Ordinaries which ended the third week of February at 5,039.1 (up 222.5 percentage points).

Advertisement
Advertisement

“The All Ordinaries appears to have bottomed in early February and gently rebounded as concerns about slowing Chinese economic growth and the dropping prices of oil and other commodities receded,” Roy Morgan Research industry communications director, Norman Morris, said, adding that despite an overall improvement in business confidence, confidence varied across different industry sectors.

“Looking at industry sectors shows confidence increasing strongly in manufacturing, finance, insurance and health care as the economy rebalances away from the mining boom,” Mr Morris said.

“However, a third straight monthly decline in retail business confidence which follows the trouble for Dick Smith and Masters, and declines in confidence for wholesale trade, agriculture, forestry and fishing and also the construction industry show that there will be winners and losers throughout the economy as the rebalancing continues.”

[Related: Small businesses demand a fair go for reform]

Confidence grows among businesses

PROMOTED CONTENT


>Following a combined decline of 8.7 percentage points from November to January, the latest figures from Roy Morgan show a 2.7 percentage point increase in business confidence in February.

The research found 44 per cent of businesses now expect business to improve over the next 12 months and only 16.4 per cent (down 5.2 per cent) expect conditions will be worse off.

There was also increased confidence in comparing the business’ performance, with 36.1 per cent (up 9.6 per cent) now feeling they are better off than a year ago, while only 32.2 per cent think they are not.

This increase in business confidence comes off the back of the best fortnight of the year for the All Ordinaries which ended the third week of February at 5,039.1 (up 222.5 percentage points).

“The All Ordinaries appears to have bottomed in early February and gently rebounded as concerns about slowing Chinese economic growth and the dropping prices of oil and other commodities receded,” Roy Morgan Research industry communications director, Norman Morris, said, adding that despite an overall improvement in business confidence, confidence varied across different industry sectors.

“Looking at industry sectors shows confidence increasing strongly in manufacturing, finance, insurance and health care as the economy rebalances away from the mining boom,” Mr Morris said.

“However, a third straight monthly decline in retail business confidence which follows the trouble for Dick Smith and Masters, and declines in confidence for wholesale trade, agriculture, forestry and fishing and also the construction industry show that there will be winners and losers throughout the economy as the rebalancing continues.”

[Related: Small businesses demand a fair go for reform]

Confidence grows among businesses
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

A high rate of loan repayments through the pandemic has somewhat slowed the growth of Heritage Bank’s book, despite a surge in approvals. ...

Small and medium-sized enterprises were the most commonly targeted victims of cyber attacks in the last financial year, according to new rep...

An overwhelming majority of Pulse Credit Union members have supported the proposed deal with Teachers Mutual Bank Ltd, with the two companie...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.