Townsville’s businesses remain optimistic in PVW’s latest Business Confidence Survey

Townsville’s business community continues to grow in confidence according to a new survey, maintaining the region’s year long streak in optimism. Find out more.

PVW Partners' Sonia Chalk is pleased to see confidence growing in Townsville's business community. Picture: Supplied.

Buoyed by the Reserve Bank of Australia’s cut to interest rates, and the prospect of more rates cuts to come, Townsville’s business community is growing increasingly confident, according to the latest figures.

After speaking with a “significant” number of businesses in the Townsville region in late March, the latest PVW Partners Business Confidence Survey for the June quarter shows a “cautiously optimistic landscape”.

Continuing the upward trend in optimism that began a year ago, the Business Consumer Change Index has risen 8.3 in the previous quarter to 8.9 this quarter.

PVW Partners attributed the Townsville region’s robust business sentiment to the local economy showing signs of strength and stability, where many businesses forecast growth in key performance drivers such as sales, consumer demand, and employment in the coming quarter.

Partner at PVW Partners Sonia Chalk said there was a 27 point surge in sales confidence, and consumer demand rose by 22 points.

Confidence in Townsville's business community has been trending upwards for the past year according to PVW's latest business confidence survey. Picture: PVW.

She said this positive result bucked the trend of previous years where confidence had dipped in the June quarter.

“It was a bit of a surprise, which is good to see for the Townsville region … it’s great to see that there is that confidence in the sales, which is going to allow the region’s businesses to grow as well,” she said.

“With interest rates going down, people will spend more because their mortgage repayments come down. The change in interest rates … it’s across the board, so all industries are able to benefit from that one economic factor.

Partner at PVW Partners Sonia Chalk said business confidence was growing in Townsville. Picture: Supplied.

“(When we) look at it by industry, and they’re all across the board increasing (in confidence) and even when we break the survey down to under an over $10 million turnover, both categories of businesses are seeing the same sort of trend of big increase in sales and consumer demand.”

Given that the survey was taken before Donald Trump’s “Liberation Day” tariffs announcement, the global uncertainty was yet to factor into the confidence index.

Despite this, Ms Chalk said Townsville’s diversified economy, with its many and varied industries, acted as a protective mechanism against the economic turbulence.

“It remains to be seen how these developments may affect exports through the Port of Townsville, as well as inflation trends and potential interest rate adjustments,” she said.

Originally published as Townsville’s businesses remain optimistic in PVW’s latest Business Confidence Survey