Views on economy strengthen.
The Roy Morgan Business Confidence survey increased 0.6% in November and is now above where it was prior to the leadership challenge in July.
Driving the small increase was a rise in confidence for business performance over the next 12 months with a majority expecting to be better off financially this time next year, the highest figure for this indicator since April 2018. Longer-term views on the Australian economy also improved in November.
Roy Morgan CEO, Michele Levine said while leadership tensions have subsided, political challenges keep coming.
“The government lost its majority after the Wentworth by-election and the Liberal Party suffered a crushing defeat in the Victorian state election and Victorian MP Julia Banks resigned from the Liberal Party meaning Morrison now leads a minority government. The full impact of these latest events don’t impact November’s reading of business confidence released today but will be felt in December.”
Despite the uncertainty about Australia’s political landscape in 2019 and beyond, Australian businesses remain largely positive about the future prospects of the Australian economy, Levine said.
“This confidence is reflected across a broad number of industries including mining, education and training, administration and support services, professional, scientific and technical services and transport, postal and warehousing.”
Business confidence in November increased in Victoria and Western Australia was unchanged in New South Wales and highest in South Australia, despite a small decline, with declines also in Queensland and Tasmania.