CORONAVIRUS FIGHTBACK Greater confidence for local businesses

BUSINESS confidence has improved in Townsville after better than expected trading conditions, a survey has found.

The quarterly PVW Partners’ Townsville Business Confidence Index charts the outlook of more than 300 business owners and managers.

The September quarter result, like the previous quarter, has returned a negative score, indicating more respondents are pessimistic than optimistic about the trading conditions ahead. But the latest score has improved by two points to be just under zero. The managing partner of the accounting and business consultancy firm, Carl Valentine, said the results suggested the economic impacts of COVID-19 had not been as bad or as far reaching as itially feared.

“There is no doubt that State and Federal government assistance measures have assisted in cushioning the blow and have been received well by operators,” Mr Valentine said.

“Respondents indicated that while impacts may not be as dire as anticipated, businesses are still cutting back budgets on entertainment and capital expenditure, with air travel expenditure unsurprisingly also being cut back.”

Mr Valentine said just 11 per cent of respondents expected to reduce employment numbers, while 18 per cent expected to increase staffing.

He said one third of respondents were looking to increase spending on advertising and promotions although this may be due to the grants and local businesses infunding programs available purpose from government.

The responses of big and small businesses, mining and non-mining sectors, showed little difference, a change from previous surveys.

Respondents were asked to rate key factors they believed would impact the viability and recovery of their businesses. More than 73 per cent expected changes in their customers’ behaviour following the COVID shutdown to negatively impact their business.

More than a third believed the opening of the Queensland border would have no impact on the recovery of their operations.

“Not surprisingly, more than 72 per cent of respondents said government restrictions around capacity in venues would have a negative impact for this on the viability of their business overcoming months,” Mr Valentine said.

“With that in mind, the recent announcements around further relaxation of these restrictions will be welcome news for many of our local businesses.”

Almost 70 per cent of businesses indicated government assistance had assisted in their recovery efforts, while a similar number said future government assistance would improve business viability.

“Infrastructure spending was also identified as key to recovery efforts, with almost 80 per cent of respondents saying government and private sector infrastructure spending would assist their business to survive the pandemic,” Mr Valentine said.

Access to finance was also identified as a priority.