none
none

Business confidence up, but consumer optimism down

31-08-2010
by 
in 

 

Business confidence in Australia is at a seven month high, but consumer confidence has dipped sharply over the last month, according to a Roy Morgan survey.

Business confidence last month rose to 117.6 up from 109.6 in July – driven by a belief that Australia will be facing ‘good times’ financially over the next 12 months.

More business owners also believe the coming year will be a good time to invest in the growth of their business, with 55 per cent now looking to invest (up from 51 per cent in July).

At the same time, consumer confidence has slumped with those surveyed expressing less confidence about the Australian economy over the next 12 months.

Only 26 per cent of Australians expect good economic times over the next 12 months, a drop of 4 per cent, while 34 per cent expect ‘bad times’, a rise of 2 per cent.

Gary Morgan, executive chairman at Roy Morgan, blamed falls in the price of iron ore, the perceived threat to the mining boom and the cancellation of HP Billiton’s $30 billion Olympic Dam copper and uranium mine as among the reasons for the slump.

But Norman Morris, industry communications director for Roy Morgan Research, says: “The recovery in business confidence in July and August provides some optimism that we have passed the worst but the situation remains fairly fragile given the uncertain global economic outlook and weakness in commodity prices having the potential to impact severely on Australia.

“The ultimate impact of any reductions in interest rates on economic activity will be influenced by the willingness of business to grow which in turn will be dependent on how business sees the economic conditions improving over the next few years.”

Roy Morgan’s consumer confidence rating is based on more than 1,000 face-to-face interviews while the business confidence survey surveyed a representative sample of 2,830 businesses.

Related news & editorials

  1. 22.02.2018
    22.02.2018
    by      In
    As part of LAND 400 defence bidding, Australia stands to receive international technology that would allow world-leading ballistic armour to be produced in a local environment. 
    If bidding is sucessful, RUAG Australia will produce the cutting-edge ballistic armour for 225 Australian Army Combat... Read More
  2. 22.02.2018
    22.02.2018
    by      In
    As the sheer scale of corporate and private food waste continues to grow as a political and economic issue, more and more groups are stepping up to show just how much our wasteful practices are costing us. 
    The newly formed Australian Food Cold Chain Council aims to address food wastage by tackling... Read More
  3. 22.02.2018
    22.02.2018
    by      In
    Carnegie Clean Energy has received a grant of AU$3 million from the government of South Australia to build a 2MW battery system near Adelaide.
    The 2MW/500kWh storage project will be installed on the site of the former General Motors Holden manufacturing facility in Elizabeth.
    The grant was awarded... Read More
  4. 22.02.2018
    22.02.2018
    by      In
    Even as large automotive brands pulled out of Australian manufacturing, truck manufacturer Iveco has been pushing into the Australian market, increasingly selling and manufacturing on-shore. 
    Along with Volvo/Mack and Kenworth/DAF, Iveco is one of a few truck manufacturers still building in... Read More