Budget boosts business confidence
The Federal Government's May Budget boosted business confidence by 9.6 points from April to 114.7 but confidence remains volatile and easily affected by events.
Roy Morgan Research, collated from 1376 interviews of all types of businesses, showed business confidence is at its highest since January (114.9), but remains below the five-year average of 117.3 and the highest of 136.3 in October 2013.
The increase in confidence was due to 60 per cent of businesses having a positive outlook for the Australian economy over the next 12 months, the highest since November 2014.
The proportion of businesses having a positive longer term outlook for the economy over the next five years also jumped from 56 per cent in April to 63 per cent in May.
Industry communications director, Norman Morris, said the falling interest rates, tax cuts for small businesses and tax write-offs for expenditure up to $20,000 will only have limited positive impact.
"The recent positive figures on GDP growth, for example, were followed the next day by a falling share market, weak retail sales and a record trade deficit, as well as ongoing global uncertainty regarding Greece and other areas," he said.
"The problems relating to getting important budget measures past the senate, the rapidly growing estimates of the budget deficit and the fact that over two million Australians are either unemployed or underemployed do not contribute to a positive business environment."
Banks need to be willing to lend and improve their relationship with businesses if they are to grow their market share in the business sector, Morris added.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
