Business confidence slumps to three year lows
Business confidence has been going through an unstable period over the last 12 months, with confidence plunging 31 points below the peak of 136.3 in October 2013 after the federal election, Roy Morgan research showed.
The Roy Morgan Research's Business Confidence survey showed December 2014 dipped by 17.7 points (down 14.4 per cent) from November to 105.3, the lowest since August 2011 and significantly lower than the four-year average of 118.
Industry communications director, Norman Morris, said the dip in confidence was due to bad publicity Australia and the world economies received during the month leading up to the Mid-Year Economic and Fiscal Outlook report from the Australian Government.
The report said the Australian budget deficit would be larger than expected due to dropping iron ore prices, weaker tax receipts and senate delays in passing legislation for cost cuts.
Only 52 per cent of businesses believe the next 12 months will be a good time to invest in business growth, down from 62 per cent in November last year and below the four-year average of 56 per cent.
"With businesses now being less likely to borrow over the next 12 months, it remains a challenge for banks to improve their satisfaction levels among businesses if they are to retain them and attract new business," Morris said.
Previous research showed personal customer satisfaction with banks has gone up, but business customer satisfaction has gown down.
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