Survey finds business conditions recovering, but economy stalled ‘due to restrictions’
A majority of businesses are concerned about business survival due to the combination of government restrictions and the ending of the stimulus support package.
Opinion
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The latest Suncorp-Chamber of Commerce and Industry Queensland Pulse Survey of Business Conditions, a quarterly survey conducted to give a snapshot of business conditions in Queensland, found that while there was some recovery in the quarter, the Queensland economy is stalled due to ongoing restrictions.
CCIQ economist Jack Baxter said, “Many small businesses are still experiencing a stimulus-driven recovery in sales and revenue, but ongoing restrictions are constraining their ability to manage costs and
boost profitability.
“This indicates that despite being open and trading, social distancing and patron limits put a cap on profitability and economic productivity”, he said.
The other key factor, playing on the mind of Queensland businesses, is the impact of when stimulus package support ends.
This is a hot topic, with 99% of businesses concerned about business survival due to the combination of government restrictions and the ending of the stimulus support package.
The results for southwest Queensland for the September quarter highlights improved conditions as business builds on the recovery from the world wide pandemic.
Business confidence in Toowoomba was strong in the September quarter.
This was despite being cautious about the long-term economic outlook.
Key results in the Toowoomba region show nearly two-thirds of businesses are predicting the state economy will contract further over the next 12 months; more than two-thirds of businesses reported they have maintained or increased capital expenditure to leverage investment incentives; while there was strong sentiment for improved profitability, 40 per cent of business reported weaker profitability; stimulus packages have been integral to business recovery; ongoing uncertainty around government restrictions remains a concern; and
the continued momentum of recovery across southwest Queensland is being closely monitored by businesses owners.
The results reflect the observations of our members across the region, of better local conditions, but further clarity and certainty about restrictions is considered critical in continuing to build local business confidence.
This requires conclusive action now, as we head quickly towards the festive and holiday season to ensure business confidence continues to rise.
No doubt, whoever wins the state election on Saturday night, they will need to urgently implement a clear and decisive strategy in support of small business, the backbone of the Queensland economy.
For a copy of the survey, click here.