Debtset – Bailiff-Sheriff Aust MEMBER Login
Opportunity for government to influence business as survey reveals declining confidence in prospects for the year ahead
A PICK UP in export activity, sales and employment saw out the last quarter of 2014 for Victorian business but has not translated into improved confidence for 2015, according to the VECCI - Bank of Melbourne survey of business trends and prospects released today.
Encouragingly, exports, particularly among Victoria’s diverse manufacturing sector, rose for the quarter and were one of the few business indicators expected to continue to rise into the new year as a result of the lower Australian dollar and healthy underlying demand among our key trading partners.
Among other highlights of the quarterly survey of over 400 businesses across seven major industry sectors was the comparatively strong sales and employment performance of the wholesale and retail sector.
Unfortunately, the strong finish to 2014 has not led to positive sentiment towards prospects for the state and federal economies in the year ahead.
Although 17 per cent of respondents anticipate stronger economic growth for the Australian economy over the next 12 months, this is well below the 28 per cent who held this view in the previous quarter.
“These findings reflect the lowest level of optimism about the national economy in two years,” said VECCI Chief Executive Mark Stone.
For Victoria, 18 per cent of respondents anticipate that state economic conditions will improve over the year ahead, a fall from 25 per cent in the previous quarter.
Regional respondents were more optimistic about the Victorian economy than their metropolitan counterparts, with 22 per cent expecting stronger conditions over the year ahead, compared to only 16 per cent of metropolitan respondents.
“The results show enormous opportunity for the new Victorian Government and the Federal Government to deliver policy reforms that raise business sentiment and competitiveness,” said Mr Stone.
“Action to reduce business costs and provide long-term certainty is needed to ensure this is a one-off dip and not the start of a downward trend in business confidence.”
“The latest VECCI-Bank of Melbourne survey of business trends and prospects is a mixed report card for the Victorian economy, revealing a disappointing decline in business confidence,” said Bank of Melbourne Chief Executive Scott Tanner.
“However, the combination of relatively low interest rates and a weaker Australian dollar should ease pressure on Victoria’s key sectors and provide growth opportunities.”
Background – About VECCI
The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers’ body in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.
Background – About Bank of Melbourne
Bank of Melbourne is investing in Melbourne and regional Victoria. Since re-launching in July 2011, the bank has tripled its workforce, opened 97 branches and become even more involved in the local community. The bank partners with the organisations and events that matter to Victorians. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.
ends
