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%. Similarly for the next 5 years, the proportion of businesses expecting good times rose to a record high of 80.4%, compared to a record low for those expecting bad times of 19.7%.
Monthly Business Confidence - Australia
Source: Business Confidence, Roy Morgan Business Single Source, average monthly sample, n = 2270
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).
The Mining industry in particular reported a large increase in Business Confidence, up 19.1 points to 156.4; the next highest increase was reported in the Administrative and Support Services (up 12.1 points to 134.9). Several industries also reported the highest level of Business Confidence yet recorded, including the Manufacturing industry (126.8 points, up 4.9 points from September), Retail (up 4.6 to 126.3), Accommodation and Food Services (up 3.1 to 126.5), Finance (up 6.4 points to 146.7) and Personal services (up 8.3 points to 122.7).
Nigel Smith, Director of Business Research, Roy Morgan Research, says:
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“Business Confidence in October reflects both business approval for the change in Government and a more general improvement in business performance. The Mining industry clearly believes the change in Government will have a beneficial impact on their businesses, despite what appears to be an otherwise negative outlook for that industry.
“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. The Retail, Accommodation and Food Services and Personal Services industries, in particular, have their highest figures we have yet recorded coming into the Christmas season.”
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