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Survey shows rising business confidence in Victoria's economic prospects
VICTORIAN business has reported increased optimism about prospects for the state economy in the year ahead, despite the current challenging trading conditions, according to the latest VECCI - Bank of Melbourne survey of business trends and prospects released today.
Almost 25 per cent of respondents expect stronger state economic conditions during the next 12 months; an increase from 20 per cent in the previous quarter.
The state-wide survey based on over 400 respondents measured actual business performance over the recent June quarter and business sentiment regarding prospects for the state and national economies over the next 12 months.
The survey, taken after the state and federal budgets were released, shows business has responded well to budgetary measures that will improve both the state and national infrastructure base and lower business costs.
“The improved sentiment in respect to Victoria’s near term economic prospects follows the state budget’s strong infrastructure focus and announced cut in the payroll tax rate to 4.85 per cent," says VECCI Chief Executive Mark Stone.
“The challenge for policy makers is to build on this momentum with further measures that convert the improvement in business sentiment into new investment and employment.
“Key priorities must be to lower business taxes and cut red tape, continue to invest in job creating infrastructure, improve industry skills and get more Victorian businesses into exporting.”
Despite a lift in business confidence, the survey found actual trading conditions for the past three months remained difficult for many businesses. Respondents reported declines across a number of key indicators including employment, exports, profitability and building and structures investment.
“Having regard for recent labour force statistics showing growing unemployment and the latest survey results, it is clear more needs to be done to tackle obstacles to job creation,” said Mr Stone.
“The mixed conditions reported by industry signal that the Victorian economy continues its transition,” said Bank of Melbourne Chief Executive Scott Tanner.
“The lift in business optimism following the State Budget is heartening and if the programs articulated in the budget are delivered this should translate to stronger economic activity.”
VECCI & Bank of Melbourne partnership
VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly Survey of Business Trends and Prospects, Business Leaders event series and Women in Business event series. The partnership builds on both VECCI’s and the Bank of Melbourne’s mutual goals in supporting businesses in Victoria.
Background – About VECCI
The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.
www.vecci.org.au
Background – About Bank of Melbourne
Bank of Melbourne is helping build a better Victoria. Since launching in July 2011, the bank has tripled its workforce, opened 89 branches and become more involved in the local community. The bank partners with Victorian organisations and events including the MCG and Melbourne Food and Wine Festival and supports industry with initiatives including Agenda Victoria. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.
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