Business confidence hit

Only real estate, building remain buoyant

BUSINESS confidence has plummeted to a four-year low as a two-tiered economy in Cairns separates construction and real estate from the rest of the city’s struggling industries.

The latest Suncorp-CCIQ Business Pulse survey reveals political and economic uncertainty are taking their toll across Queensland, with economic sentiment dropping 5.1 points from the September quarter to a level of 40.7 on a seasonally adjusted basis.

CCIQ chief economist Dr Marcus Smith said businesses in Cairns were either very confident – for those in the construction sector – or somewhat subdued with foot traffic slowing.

“While Cairns has seen gains in both construction and real estate, which accounts for almost a third of the region’s 13,650 businesses, established businesses indicated that the operating environment had become more challenging,” Dr Smith said.

Cairns Chamber of Commerce CEO Debbie-Ann Bender said many of the city’s traders were enduring lean times despite Crystalbrook Collection’s tri-hotel development catapulting the employment rate to six consecutive months of full-time job gains.

“A suite of big ticket projects that are obviously positive can’t mask the difficulty a number of smaller retailers are facing,” Ms Bender said.

“It is critical that policy makers maintain a strong focus on ensuring these operators are fully supported.”

Suncorp’s Banking and Wealth CEO David Carter said there remained much to be positive about in Queensland’s economic outlook.

“It boasts a diverse economy which is becoming stronger thanks to a weakening Australian dollar and improvements in export industries including the resource and agriculture sectors,” he said.

Herron Todd White research consultant Rick Carr has also released his latest CairnsWatch report showing a 2.9 per cent increase in the employment trend from December 2017 to December 2018.

The unemployment rate had fallen to 4.7 per cent.

“The Cairns economy is entering 2019 with improvements on the employment and labour market front,” Mr Carr reported.

“Tourism still remains at healthy levels but will need to be closely watched as the year progresses.”