Gold Coast business: Confidence remains high after statewide downturn in face of recession

Business confidence on the Gold Coast is withstanding a statewide downturn, which has been branded ‘the worst on record’. And we have the light rail to thank.

BUSINESS confidence on the Gold Coast is withstanding a statewide downturn with it plunging to its lowest level since the Global Financial Crisis, a new survey reveals.

The Chamber of Commerce and Industry Queensland’s (CCIQ) Pulse sentiment survey, to be released today, paints a bleak picture of business’ attitudes towards the economy statewide in the face of a potential recession - except for on the Gold Coast.

Local businesses surveyed remained more positive than those in the regional areas, but those surveyed in the report are calling for greater government intervention to keep the economy strong.

Business confidence is weak state-wide in the face of a downturn in spending.

Otherwise, the survey, of more than 38,000 businesses across the state revealed:

* Business investment was at its lowest reading since 2014, with 28 per cent of respondees saying they did not intend to increase investment in the December quarter;

* 50 per cent of businesses reported a fall in profitability, with one third of respondees expecting this would continue through Christmas;

* Hiring intentions would remain soft heading into Christmas after 24 per cent of businesses reduced staff in the past quarter.

Gold Coast Central Chamber of Commerce President Martin Hall. Picture: Richard Gosling

While CCIQ described business conditions as hitting “rock bottom” across the state, Gold Coast business leaders say the Glitter Strip’s outlook remained positive.

Gold Coast Central Chamber of Commerce president Martin Hall said the city was “holding its own” despite the tough economic headwinds.

“We are being bolstered by a low unemployment rate, strong employment and growth in education and a robust construction industry,” he said.

“This has allowed us to continue performing well against expectations.

“We are encouraged by ongoing projects such as the light rail which will generate jobs and continue to invigorate the economy,” Mr Hall said.

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Artist impression of Gold Coast Light Rail Stage 3A

The survey said economic conditions for small and medium enterprises were “the worst on record”, with the confidence index falling to 36.4 points below the indication of optimism of 50 points.

The Morrison Government’s income tax cuts failed to boost spending, according to the survey, with retail trade data falling 0.1 per cent in October.

CCIQ chief economist Dr Marcus Smith said the State Government needed to provide immediate relief through targeted spending.

Prime Minister Scott Morrison. (AAP Image/Mick Tsikas)

“The solutions to improving sentiment involve clearly articulated policy initiatives, greater governmental co-ordination at all levels and encouragement of private sector projects,” he said.

“Record bankruptcy levels in the state reflect the difficulties of a global economy where trade wars between Australia’s major trading partners have only served to add another layer of political uncertainty on an already stressed private sector.”