While the results of the survey indicated there was some improvement in the number of businesses expecting their business to be better off financially next year, the proportion of businesses considering the next 12 months to be a good time to expand decreased.
The number of businesses expecting the economy to improve in the next 12 months improved, but there was also an increase in the number of businesses that consider themselves worse off compared to 12 months ago.
Roy Morgan industry communications director Norman Morris said the lack of improvement in business confidence was to be expected due to the uncertainty of the forthcoming Budget.
“The National Commission of Audit Report released at the beginning of May has had a dramatic negative impact on the ANZ- Roy Morgan Consumer Confidence level in the first two weeks of this month and is likely to have a negative impact on business confidence in May and beyond,” said Mr Morris.
“The full impact of the report will depend on the extent to which the federal government implements the commission’s recommendations.”
Out of the industry sectors the survey showed mining remains the most confident at 150.9, followed by finance and insurance at 139.9.
The retail, construction and manufacturing sectors remain below the average confidence level, however, with confidence ratings of 108, 113.7 and 115.3 respectively.
“The hoped-for improvement in confidence in the key areas of retail, construction and manufacturing, which were seen as making up for a slowdown in the mining industry, did not happen during April,” said Mr Morris.
“These sectors all remain below average in confidence, which is not a good sign for economic recovery.”
The results also indicated all states have similar confidence levels.
Western Australian generated the highest confidence at 126.4, followed by Tasmania at 122.4, South Australia at 121.4, NSW at 119.2, Victoria at 119 and Queensland at 117.6.
During April, Victoria, Queensland, and South Australia all experienced a drop in confidence, while NSW and Tasmania improved.
