Australian business confidence dips as economic realities hit

MELBOURNE – The latest Roy Morgan Research’s Business Confidence survey in December 2013 shows business confidence has fallen sharply from its immediate post-election peak of 136.3 in October to 125.2.

“This turnaround was expected to some degree after the election but a number of negative events since have contributed to a more severe drop than was considered likely,” the Survey says.
“The further drop in confidence  was caused by a decline in positive feelings about where the economy is heading in the next 12 months and the next five years. There has also been a small drop in the proportion of businesses considering that the next 12 months are a good time to invest in growing the business.”
The decline was across micro business, down 6.1 points to 123.3,and  small business, down 6.0 points to 137.3, with medium/large business steady (up 0.2 points to 147.1). “Medium/large businesses (turnover $5m+ p.a.) have clearly been the most confident over the last three years, and in December, they remain at an historically high level – well above their smaller counterparts,” the Survey says. www.roymorgan.com (ATI).