Thursday, June 14th, 2012 - Roy Morgan Research
Business Confidence in Australia in May 2012 declined to 105.8, down from 112.2 in April and is now at the lowest level since August 2011. These are the latest findings from the Roy Morgan Research Business Confidence Survey conducted among a sample of 2,787 businesses across Australia in May 2012.
 
The main reason for the drop in confidence in May was that businesses are now much less optimistic than they were even a month earlier about economic conditions in Australia over the next 12 months. The decline in May coincided with a significant drop of around 8% in the ASX over the month and major concerns about the deteriorating situation in Europe.


Roy Morgan Business Confidence Rating


Source: Roy Morgan Business Survey, Dec10 – May12, Average monthly sample n=1,740.


Over the last year, businesses in the mining industry were the most confident but over recent months their confidence has declined and is now behind those in “finance and insurance”, “accommodation and food services”, “health care and social assistance” and “professional, scientific and technical services”. The least confident major industries are “construction” and “manufacturing”.


Norman Morris, Industry Communications Director, Roy Morgan Research, says:
 
“The reduction in the cash rate of 0.50% points in early May appears to have had little if any impact on confidence with businesses in all states showing a decline. Victoria was hit the hardest but remained around average, while WA is still the most optimistic state and Tasmania and SA continue to lag.

“Of major concern to the government will be the fact that there has been a drop in the proportion of businesses thinking that the next 12 months will be a good time to invest in growing their business. This has now dropped to only 48% which is the lowest since the survey began in December 2010 and is likely to impact negatively on Australian’s growth prospects over the short to medium term.”


 
About Roy Morgan Business Single Source Survey:

The Roy Morgan Research Business Survey began in May 2010 and currently conducts more than 2,000 interviews per month to measure Business Confidence. Around 1,100 of these interviews also cover all aspects of Business Finance with the remainder covering Telecommunications.

Contact Profile

Roy Morgan Research


Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332
W: www.roymorgan.com

Keywords

The main reason for the drop in confidence in May was that businesses are now much less optimistic than they were even a month earlier about economic conditions in Australia over the next 12 months.

Categories

Sharing

More Formats