Confidence surges Survey finds sentiment at highest since global finance crisis
BUSINESS confidence in Townsville has surged to its highest point since the global financial crisis, according to a survey.
The quarterly PricewaterhouseCoopers Townsville Business Confidence Survey will give hope to the city’s growing ranks of unemployed with business owners saying they intend to hire staff.
PwC Townsville partner Carl Valentine said the survey’s overall score of 11.4 points was its highest reading since December 2007, while the increase of 5.7 points compared with the previous quarter was the largest rise in four years.
“Townsville business confidence has been steadily increasing since June 2016 and the latest results show that it continues to gain momentum,” Mr Valentine said.
“The outlook for employment is the most positive we’ve seen since before the Global Financial Crisis.”
Mr Valentine said business people were likely encouraged by recent announcements on major projects as well as a sense that the Townsville economy was recovering.
Of those surveyed, 37 per cent expected their employment level to increase, 60 per cent believed it would remain stable and 3 per cent predicted employment would decline.
“There are a number of big projects that are in the pipeline for Townsville from which businesses eventually are going to start to see the benefits,” Mr Valentine said.
“I think businesses are looking to the gains for the year ahead.” The firm surveys more than 200 Townsville business owners and managers on their outlook for the quarter ahead with a positive score indicating more optimists than pessimists for business conditions.
Townsville Enterprise Director, Policy and Investment, Michael McMillan agreed confidence was returning albeit with business owners waiting to see cranes on the skyline.
“We have had a number of projects give significant momentum,” Mr McMillan said.
He said positive announcements about projects such the Adani coal mines which would ultimately employ 10,000 people were driving the momentum.
The city also recorded strong Christmas period retail activity.
“Businesses will be watching with a careful eye to see how this momentum progresses,” Mr McMillan said.
“We will see a real change in the economy when we start seeing the physical activity ... the cranes on the skyline around the stadium project and the ads in the paper from Adani for employment opportunities.”
In other survey results, 89 per cent expected sales and consumer demand to remain stable or increase, while business operating capacity increased to an average of 80 per cent.