New govern­ment has a big task to re­vive busi­ness con­fi­dence, says Evans

Port Douglas & Mossman Gazette - - FRONT PAGE -

THE is­sue for mar­kets and the Aus­tralian econ­omy will be whether the eelec­tion of a new govern­ment leads to a marked im­prove­ment in con­sumer and busi­ness con­fi­dence in par­tic­u­lar, says West­pac chief econ­o­mist Bill Evans. A key dy­namic which has been con­strain­ing de­mand in the Aus­tralian econ­omy has been the fail­ure to date of busi­ness con­fi­dence to re­spond to lower in­ter­est rates in the way in­ter­est rates have acted as a cir­cuit breaker in pre­vi­ous eco­nomic cy­cles. Con­sumer con­fi­dence has re­sponded to a de­gree but busi­ness con­fi­dence and how house­holds feel about their job se­cu­rity have lagged in this cy­cle.

‘‘Our dis­cus­sions with our busi­ness cus­tomers point to three ar­eas which are weigh­ing on con­fi­dence: govern­ment reg­u­la­tion (both red and green tape); rigidi­ties in the in­dus­trial re­la­tions sys­tem; and an

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.