Sensis Business Index
Sensis Business Index
Business confidence has doubled in fourth months.
Business confidence about the future of the national economy has doubled since September, according to the November wave of the Sensis Business Index.
In September when asked about what the economy would be like in 12 months just 19% said it would be better. That sentiment has risen considerably since, reaching 23% in October, 32% in November and now sits at 38% - double the September figure.
Those businesses believing the economy will be worse in a year has almost halved, going from a whopping 56% in September to just 30% in the December Index.
The confidence is across the board – every state and territory – and the changes are considerable. In Tasmania, for example, 54% of businesses in September said the national economy would be worse in 12 months. Now that figure is down to just 23%.
To see where business think we are heading is really sobering taking into account the lockdowns and sacrifices businesses have had to make. This really is great news coming into Christmas.
The loss of JobKeeper at the end of March next year will have the biggest impact on the retail sector with pessimism rising.
The November wave showed that 42% of Retail businesses said the loss of JobKeeper would have a major impact on their business. The 42% was up from 33% in November.
Overall 31% of businesses said the loss of JobKeeper would have a major impact, 53% a moderate impact and for 15% no difference.
The percentage of businesses in Victoria worried about the loss of JobKeeper went down from 35% in October to 28%. However, they were the only ones more optimistic along with Western Australia which went from 27% of businesses worried in the previous wave to just 12% now.
All other states were more pessimistic about the loss of JobKeeper with South Australia and NSW increasing significantly in just a month. NSW went from 23% to 33% and South Australia from 27% to now 44% of businesses believing the loss of JobKeeper would have a major impact on their business. Queensland, Tasmania and the ACT were pretty much unchanged.
