Qld business confidence up but wage growth a concern

Queensland business confidence has inched up following the federal election, however there’s still one thing the state’s employers fear.

QUEENSLAND business confidence inched forward in the wake of the federal election, but remains well below the levels of 12 months ago.

The Pulse Survey, which has been conducted by the Chamber of Commerce and Industry Queensland for over two decades, has revealed business are reporting better trading conditions.

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Increased turnover, improved employment and an easing of operating costs like rent, insurance and electricity were reported by the bosses of Queensland business.

However the confidence in these areas was offset by a sharp increase in concerns about rising labour costs after the Fair Work Commission hiked the minimum wage by 3 per cent.

The survey of almost 600 small and medium-sized business owners and operators from across Queensland found there was significantly more confidence in the national economy than what was occurring at a state level.

It found the index outlook for the national economy improved from 44.6 per cent last quarter to went 50.9 per cent while the state economy index went from 42.4 per cent to 43.6 per cent.

CCIQ general manager Amanda Rohan said the marginal improvement in overall confidence was welcome but more needed to be done to help businesses met the challenges that they were facing, particularly in regional areas.

“The solutions to improving sentiment involve clearly articulated policy initiatives, a greater coordination of government at all levels working together and the encouragement private sector projects,” she said.

“Frustration at the pace of economic growth has been a consistent theme for the small business sector over the last three years.”

The new figures will be welcomed by the State Government.

According to the June quarter Pulse Survey, the number of businesses with growing optimism about Queensland’s economic outlook improved slightly but the figure still lagged behind 12 months ago.

Two-thirds of business reported similar or better trading conditions with a similar number saying that their turnover had also improved.

In a result that will be welcomed by the State Government, there was increasing confidence among bosses that their business would take on additional workers.

The survey was undertaken after the federal election, which confirmed the Coalition’s tax cuts, but before the State Budget, when payroll tax concessions were introduced.

Suncorp head of business customers John Debenham said while the improvement in confidence may only be minor, at least was in the right direction.

“The current low interest rate environment is delivering financial reprieve for small businesses and as a result, we are seeing more small businesses talk to us about lending and investing which is asign of optimism,” he said.

“This paired with improved weather conditions in some parts of Queensland; ongoing strong commodity prices and improved property prices as we head into the new financial year should mean the outlook will continue to improve in the next quarter.”