Survey shows Victorian business expects strong finish to 2015

VICTORIAN businesses forecast strengthening sales and employment in what is anticipated to be a positive end to 2015, according to the quarterly VECCI Survey of Business Trends and Prospects released today.

“Following a tough second quarter of 2015, it is pleasing to see key business indicators rebound and the Victorian economy poised to round-out 2015 on a healthy note,” said VECCI Chief Executive Mark Stone.

In an encouraging sign for business, sales performance improved for one in three (35 per cent) surveyed businesses during the September quarter. This is an improvement on the June 2015 quarter, when sales trends were comparatively flat across surveyed industries.

Sales are expected to continue to improve in the lead up to Christmas, with 34 per cent of respondents anticipating growth in the December 2015 quarter.

The VECCI survey of nearly 450 businesses across seven major industry sectors also found that selling prices are expected to increase, with almost one in five (17 per cent) surveyed businesses predicting a rise. The positive sales and selling price outlook indicates business expects stronger consumer spending over the next three months.

In a further sign of confidence, following a sharp decline in employment levels last quarter, almost one in five (17 per cent) surveyed businesses reported a rise in employment during the September quarter and a similar share forecast further jobs growth in coming months.

“It is positive to see both business trading conditions and confidence on the rise, however the underlying soft job market and intense international competition remain headwinds to a sustainable lift in business performance,” said Mr Stone.

“In this environment, policy makers must do what they can to ensure business confidence remains positive. Action is needed to lower business costs and encourage job creation.”

The Victorian Employers Chamber of Commerce and Industry (VECCI), established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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