March Quarter Business Confidence

The recent quarterly review of business activities by State Government and the AB quarterly sponsored review indicate a better result for business within the most recent 3 month period.

These reports certainly fall into line with what Transport Finance is seeing in the market place. There are consistent trends occurring in Victoria and New South Wales, although I would have to say Queensland is a little slower and less consistent than the other States.

The following appeared in national newspapers in early April 2013.

The NSW government says a 13 per cent rise in business confidence since the last quarter means more job opportunities for people in NSW.

The latest Sensis Business Index shows NSW small to medium enterprises (SMEs) are feeling more bullish about 2013.

In the last quarter, NSW SMEs confidence for the year ahead improved by 13 per cent, with an overall net 33 per cent result for the last 12 months, which is above the national average.

Treasurer Mike Baird says it’s another positive result for NSW.

“Apart from Victoria, NSW businesses recorded the highest confidence of all the states. This result is particularly positive considering the tough economic environment businesses faced in 2012,” he said in a statement on Monday.

“This optimistic outlook is good news for the NSW economy and means more job opportunities for the people of this state.”

NSW Minister for Small Business Katrina Hodgkinson said NSW recorded the highest performance in sales and profitability of any state or territory in the last quarter and the highest proportion of exporting SMEs in Australia.

In part, the following was bullet pointed within the recent NAB Business Confidence report for March 2013,

  • The improvement in business conditions is almost entirely attributable to two industries; finance/ business/ property, which probably gained from rising equity prices and easier financial conditions, while lower borrowing rates appear to have helped to strengthen construction activity. Consumer and trade dependent sector conditions remained weak, implying that either lower interest rates need more time, or more stimulus (e.g. RBA rate cuts) are needed to strengthen consumer demand. Conditions were little changed across mainland states in Q1, with the exception of Queensland, where they lifted considerably.

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