Optimism grows among city’s business owners and managers
Future looking rosy
BUSINESS confidence has improved in Townsville despite concern among businesspeople that the election of a State Labor Government might not help boost activity.
The PricewaterhouseCoopers Townsville Business Confidence Index, taken from a survey of about 250 business owners and managers, returned a score of minus 0.5 points in its outlook for business conditions in the June quarter, up from minus 1.2 points in the March quarter.
The result indicates an almost neutral outlook for business expectations.
PwC Townsville partner Carl Valentine said the slight improvement was somewhat surprising given that just over half the respondents expected the recent change in gov- ernment would have a negative impact on business.
He said people could be focused on getting on with business regardless of the change.
“It is encouraging to see movement towards more positive sentiment,” Mr Valentine said. “This is the first time we have seen consecutive quarters of improving confidence since June 2010.”
Mr Valentine said the result also showed the State Government had an important role to play in creating policies focused on sustainable economic development and job creation to ensure the improvement in confidence continued.
Almost 75 per cent of re- spondents believed sales would remain stable or increase.
Mr Valentine said this result was driven mostly by businesses working outside the mining sector where 73 per cent expected an increase in sales. There was a positive shift in sentiment across key indicators including consumer demand, employment, promotions and advertising and business air travel, all of which were up from the previous quarter.
In addition to the survey on confidence, businesses were asked what key achievement they would like to see from the new State Government.
Mr Valentine said half the respondents indicated they wanted to see meaningful local infrastructure projects that would boost the Townsville economy while also creating sustainable growth and jobs.
This echoed sentiments expressed in the previous survey.
“While business owners need to be realistic about the financial capacity of government to invest in new infrastructure, these responses send a clear message to government,” Mr Valentine said.
“Though issues relating to infrastructure investment are still present, businesses appear to be looking beyond them and finding other opportunities to be confident in business.”