Post-election, Australian business confidence highest since 2011

MELBOURNE – Australian business confidence rose to its highest level since January 2011 following the September election, according to Roy Morgan Research, which says a rise of 14.7 points to a score of 134.3 is the biggest monthly increase in business confidence recorded since the survey began in December 2010. The figures are drawn from 2,787 interviews with decision-makers representing all types, sizes and locations of businesses around Australia.

The two biggest factors contributing to the increase in confidence were businesses reporting they expect good economic conditions in Australia over the next 12 months, which increase by 10% points to 75% of all businesses; and the proportion of businesses believing that now is a good time to invest in growing their business, which also increased by 10% points to 66%. In both cases these scores were the highest ever recorded for these two measures.

Nigel Smith, Director of Business Research at Roy Morgan Research, said Australian businesses clearly expect the change in government to improve the fortunes of the economy over the coming year. “The challenge for the new Government is to meet these very high expectations. If businesses continue to have confidence in the future of the economy, and therefore invest, that confidence in itself should contribute to improved economic growth.” www.roymorgan.com (ATI).