Roy Morgan Research’s November 2013 Business Confidence is down 5.2 points in the month to 131.1. The November figures are the results of 1,624 interviews conducted by the market research company across all industries, business sizes and locations across Australia.
According to the Roy Morgan Research findings, this signals further decreases to come in Business Confidence which are mainly caused by a decline in positive feelings about where the economy is heading in the next 12 months and the next five years.
“The sharp decline in business confidence in November following the highs in the previous two months created by the Federal election was probably to be expected to some extent as market realities hit, but a number of events have combined to increase this uncertainty,” said Norman Morris, Industry Communications Director, Roy Morgan Research.
“The November result was most likely impacted by the extensive press coverage of the budgetary situation and the need to lift the debt ceiling by two hundred billion dollars, which appears to have been a complete turn-around from the picture that was presented prior to the election.”
This decline in Business Confidence was across all business sizes, with micro business down 5.4 points to 129.4; small business down 4.4 points to 143.3 and medium/large business down 3.4 points to 146.9.
In terms of states, biggest losses in business confidence were recorded in Western Australia and South Australia. Queensland is currently on 136.4, followed by New South Wales with 134.0. Tasmania (124.5), WA (125.6), Victoria (126.4) and SA (131.0) have below average business confidence.
In terms of industries, Mining is in the lead in November with 149.7 (down from 156.4 in October), followed by Retail with 131.6 (up from 126.8 in October) and Construction with 127.9 (up from 122.9 in October). Agriculture is well below average with 121.9.
“Other events that are likely to have contributed to a more negative outlook for business included the spying controversy regarding Indonesia, problems in the car manufacturing industry and forecasts that the growth in the Australian economy was slowing. The decline in the Australian dollar was obviously a positive for exporters but would also have had a negative impact on the import of goods,” said Mr. Morris.
“During November the ASX 200 declined by 2 percentage points, which was obviously a reflection of some negative feelings regarding the Australian economy.”
Mr. Morris further added that despite negative impacts, the level of business confidence in Australia remains above the average over the last three years.