Roy Morgan’s latest business confidence survey, which canvassed 1,099 businesses across Australia, found business confidence has increased seven per cent from October and is above the four-year average.
“The improvement in business confidence in November was due largely to a big increase in the feeling that the next 12 months would be a good time to invest in business expansion,” Roy Morgan industry communications director Norman Morris said.
“In November the proportion of businesses considering that the next 12 months would be a good time to invest in growing their business increased to 62 per cent, which was the highest level since January,” he said.
Mr Morris said business confidence across the retail, construction and manufacturing sectors are showing tentative signs of improvement.
“It is hoped [these sectors] will make up for a slowdown in mining investment and iron ore prices,” Mr Morris said, “[although they] are very unlikely to cover the impact of the mining downturn.”
“Manufacturing, despite some small improvement, remains below average in confidence (with 108.9) but construction (127.0) and retail (126.1) are both narrowly above average and are showing some positive signs,” Mr Morris said.
Mr Morris also pointed out movements in business and consumer confidence are likely to remain volatile with world social, political and economic events, as well as uncertainty regarding the Australian economy likely to impact levels at any time.
