By JONATHON HOWARD
BUSINESS confidence in Noosa as well as the Sunshine Coast has experienced a significant turn-around, according to the latest Westpac Group CCIQ Pulse Survey of Business Conditions.
The largest contributing factor, according to small business survey respondents, has been greater diversification, ongoing construction of the region’s major new public hospital, a housing boom and increased tourism in the three months up to 30 June.
Noosa Chamber of Commerce and Industry Queensland (CCIQ) president Sarah Fisher, said there was above-average performance results in the region, with general business conditions, sales and profitability improving.
“Sales and revenue increased almost 10 percentage points, with the highest level in the state (57.3) and it was the only region to report a positive profitability index (50.5) in the June quarter,” Ms Fisher said.
“All key business performance indicators are expected to remain steady in the September quarter.”
That was a welcome improvement on the March quarter, when the Pulse Survey revealed almost every region in Queensland suffered a fall in most business indicators during the first three months of the year.
Concerns about an unstable Senate and the inability of the Federal Government to implement its controversial budget have combined to dampen business confidence across Queensland.
The new Senate – already nicknamed the Star Wars Cantina – has struck fear into the business community with its initial blocking of Carbon Tax repeal legislation and lack of support for budget measures.
Ms Fisher said confidence in the state and national economies remained positive overall, but business expectations for improved end-of-financial year results have failed to materialise with weak sales.
“Subdued sales results and tough trading conditions have constrained business growth,” she said.
“While labour cost pressures remain tempered, other input costs such as insurance and energy have continued to rise progressively, squeezing profitability.
“Accordingly, businesses continue to put employment decisions and capital investment plans on hold.
“Short-term expectations over the next three months are modest, with neutral or marginal improvement across all key business indicators.
Pulse is the largest survey of Queensland businesses, providing critical insights into the sentiment of business owners and managers across the State. An Index score above 50 represents strengthening prospects for the indicator and an index score below 50 indicates weakening prospects.
