By Staff writers
Business optimism is the highest it’s been since 2011, according to results from the WA Super and Chamber of Commerce and Industry's quarterly business confidence survey.
Business confidence is up. Credit: Glenn Hunt
The survey found confidence has surged to mid-boom levels and the results come as NAB executive Anthony Healy predicted business loans would grow more quickly than mortgages.
Chamber chief economist Rick Newnham said 75 per cent of WA businesses expected the economy to improve or stay the same in the short term – the highest number in seven years.
Mr Newnham said 63 per cent of businesses expected the economy to improve or stay the same in the next 12 months.
“This is a stark difference to just under three years ago when business confidence bottomed out to the same lows experienced during the GFC – confirming that the WA economy has reached a turning point," he said.
More than half of businesses surveyed expected to increase their production in the next quarter, while 36 per cent were looking to keep it stable.
The jobs market is looking promising as well, with a third of businesses saying they increased their workforce this quarter while 49 per cent said they kept it steady.
It's not all good news though as the retail sector is still hurting in the face of online competition and regulatory burden.
Mr Newnham said more than 40 per cent of retailers anticipated economic conditions to worsen over the coming year, reflecting the low growth in retail sales across WA.
He said 40 per cent of businesses identified rising operating costs as the biggest barrier in growing their business over the coming year, followed closely by weak demand and foreign and online competitors, both 36 per cent.