Rebound in region’s business confidence

BUSINESS confidence is being restored in Townsville as the region begins its recovery from the COVID-19 pandemic, a survey shows.

The overall score of the PVW Partners December quarter Business Confidence Survey increased three index points and has moved back into positive territory for the first time since the March quarter results.

A positive score indicates more optimists than pessimists among owners and managers in their outlook for business conditions quarter ahead.

PVW Partners managing partner Carl Valentine said the result showed that the Townsville business community was feeling more optimistic about the months ahead.

“It is fantastic to see North Queensland businesses growing in confidence as restrictions ease and life in Townsville returns to some semblance of normality,” Mr Valentine said.

“Around one-third of survey respondents indicated they expect employment opportunities within their busiin the ness to increase over coming months, while almost 40 per cent of respondents said they expect sales to increase.

“There is increased sentiment that our region’s broader economic recovery will now continue after the disruptions of COVID-19, supported by the well-targeted government stimulus measures.

“The upcoming festive season will no doubt provide a much-needed boost for those in the retail sector and will hopefully assist in keeping business confidence growing into 2021.

“The survey results from the last three quarters are starting to tell a story of a faster regional recovery from the Covid-19-induced recession than was the case in the aftermath of the GFC, and we are of the view that our business community should be confident in their ability to grow sustainably and create new jobs over the medium term.”

As Saturday’s state election looms, survey respondents were asked to identify what they believed would be most critical to the economic recovery of regional Queensland.

Mr Valentine said 29 per cent identified ongoing government stimulus for business as the No. 1 factor contributing to their sustainability, while 25 per cent said the easing of COVID-19 restrictions would be key.

“While this survey was conducted prior to the handing down of the recent federal budget, the various measures introduced to enable businesses to lead our economic recovery, including loss carry-back, temporary full expensing of depreciable assets and the Jobmaker arrangements will no doubt be well received by the businesses in our region,” Mr Valentine said.