Survey charts re- elected Palaszczuk Government’s effect on confidence
BIG gains in business confidence in Townsville have evaporated with the re- election of a Labor State Government, according to a survey.
PVW Partners has released the results of its March quarter Townsville Business Confidence Index showing the largest single drop in the survey’s history.
The index score dived 11 points to negative 1, indicating more pessimists than optimists among the 300 Townsville business owners and managers surveyed.
PVW managing partner Carl Valentine said a big component of the fall related to expectations about falling consumer demand.
But he said almost half the respondents expected the reelection of a Labor government to have a negative impact, with just 18 per cent expecting a positive impact and 35 per cent saying it would have no impact.
“While it would be a extreme to equate the little large drop in business confidence in the March quarter to that election result, the Townsville business community did indicate more negative impacts are expected from a State Labor government than positive impacts,” Mr Valentine said.
He said he was surprised by the extent of the fall and believed delays in projects like Adani’s coal, rail and port project were a factor.
“It’s great to see things like the stadium being built and the highway upgrades, but there’s still a lot of things that haven’t happened that we have been talking about for a couple of years,” Mr Valentine said.
“While there’s great stuff in the pipeline, there’s still a lot of bloody hard work to realise these opportunities.”
Mr Valentine said the results suggested local MPs had some work to do to nurture positive business sentiment and help create the conditions in which businesses could thrive and create jobs.
According to the survey, 39 per cent expected demand for their goods and services to fall.
Larger businesses with turnover above $ 10 million were more subdued but Mr Valentine said it was smaller businesses who were the main contributors to the result.
About 25 per cent of smaller businesses expected declining employment in their business.
“Townsville’s business community expects a tough start to 2018. Despite the large drop in the March 2018 quarter, business confidence remains stronger than at many points in time over the past five years.”