Powered by MOMENTUM MEDIA

Business confidence down 9.1% in May

Reporter
— 1 minute read

There was a sharp drop in business confidence in May following the federal budget, despite the share market recording a slight improvement, says Roy Morgan.

Roy Morgan Research's monthly business confidence index fell 9.1 per cent in May, down from 123.1 to 111.9.

A statement by the research house said the "large drop" in business confidence is likely to be more tied to the "poorly received" federal budget than "uncertainty surrounding the upcoming federal election".

Advertisement
Advertisement

"The level of business confidence in May is clearly negative for the economy overall, and now below the year average (116.7)," said Roy Morgan.

"The weakest indicators in May relate to the upcoming year, which suggests the impact of election uncertainty. 

"Net expectations of business performance over the next 12 months have dropped to 20.6 points (down 17.5 points in May) and net views of whether the next 12 months will be a ‘good/bad time to invest’ are now 12.1 points (down 14.2 points)," said Roy Morgan.

Roy Morgan industry communications director Norman Morris said the "worst possible outcome" of a federal election for business confidence – a hung Parliament – is currently "looming large".

"Unfortunately for businesses, the longest federal election campaign for more than 60 years ensures there will be little clarity on this issue until July – at the earliest," Mr Morris said.

Read more:

ANZ close-lipped on life insurance sale

Suncorp announces unified business model

Women to bear the brunt of super changes

Bernie Ripoll joins Map My Plan board

APN Property hires fund analyst

 

Business confidence down 9.1% in May
investordaily image
ID logo

related articles

  • Bendigo Bank launches $300m raise as profit plunges

    Bendigo and Adelaide Bank has opened a $300 million capital raise as the company has recorded a 28.2 per cent drop in profit year-on-year fo...

  • APAC braces for virus hit

    As the coronavirus death toll climbs, economies throughout the Asia Pacific are preparing for an impact greater than that of SARS. ...

  • QBE takes climate hit

    QBE has recorded a surge in profits but drawn the ire of shareholders who believe it has failed to act on climate change risks as unusual we...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.