Survey shows strong shift in confidence for year ahead

VICTORIAN business sentiment about the Victorian and Australian economies over the next year has risen strongly, according to the Victorian Chamber of Commerce and Industry’s Survey of Business Trends and Prospects released today.

The Victorian Chamber’s Survey of Business Trends and Prospects summarises the views of over 500 metropolitan and regional Victorian businesses across seven major sectors.

Over the December quarter 2015, 23 percent of respondents said they anticipate stronger national economic growth over the next year. Sentiment for the Victorian economy also rose, with 23 percent of respondents also expecting better economic conditions in the year ahead.

Businesses reported growth in net sales, exports, employment and investment in plant and equipment during the December quarter. However, wages and other labour costs also continued to rise, squeezing profits.

“Despite the rise in business sentiment, business confidence remains fragile and more must be done to sustain and grow this newfound optimism,” said Victorian Chamber Chief Executive Mark Stone.

“These findings point to an opportunity for both state and federal governments to deliver business-focused 2016-17 budgets that convert this sentiment into medium and long-term economic growth and job creation.

“Victorian business is looking to governments to deliver budgets that reduce the cost of doing business, drive productivity through major infrastructure projects, boost workforce skills and grow our international trade capabilities.”

The Victorian Chamber of Commerce and Industry, 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.

victorianchamber.com.au

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