Big projects sustain confidence in city
TOWNSVILLE is enjoying its best run of business confidence in almost a decade as large enterprises gear up for infrastructure, mining and residential projects, according to a survey.
The PVW Partners September quarter Townsville Business Confidence Index returned an overall score of 3.5 points, down on the previous period but the fifth consecutive positive result.
A positive result indicates more optimists than pessimists among the more than 250 business owners and managers surveyed.
PVW managing partner Carl Valentine said results showed overall confidence among business participants decreased 4.4 points on the June quarter result and down 7.9 points on the peak March quarter.
“However, it is significant to note that the September quarter result marks five consecutive quarters of positive business sentiment in Townsville – the longest sustained period of relative positivity since 2008,” Mr Valentine said.
He said owners and managers in larger businesses were more optimistic than their small business counterparts.
“This may well indicate our larger businesses are gearing up for work on the many projects proposed for our region before those opportunities are realised for our smaller businesses which will also work on those projects too,” Mr Valentine said.
Those projects included Lendlease’s $ 4.7 billion residential development Elliot Springs, infrastructure projects led by the Townsville City Council and mining projects such as Adani’s Carmichael coal mine.
Mr Valentine said businesses servicing the mining sector were more positive.
“This suggests the continuing revival of our mining sector and the continued confidence that businesses servicing that sector are drawing from that revival,” he said.
“The mining sector is generating more work than other sectors.”
While the Federal Government has extended tax cuts to businesses with turnover up to $ 25 million from July, up from $ 10 million last year, it seems many are yet to see the benefits.
Only 18 per cent of respondents expected the changes to be very beneficial and 29 per cent expected no benefit at all with the balance expecting a limited benefit.
Mr Valentine said the results could reflect the difficult trading conditions where many businesses had sustained tax losses.
Tax cuts should be increasingly beneficial as conditions improved and more businesses were able to achieve growth, he said.