SMALL businesses on the Sunshine Coast are more optimistic about their economic growth prospects, according to new research.
The exclusive Westpac Group-CCIQ Pulse Survey of Business Conditions for the September quarter showed many encouraging signs for the region.
Chamber of Commerce and Industry Queensland senior policy advisor of advocacy Kate Whittle said business performance for the Sunshine Coast economy had been strong in the past three months and was at a higher level than any other region in Queensland.
She said the fall in the Australian dollar had boosted tourism and broader economic activity, while a fairly buoyant construction and property market had brought people to the region.
“Confidence in the Sunshine Coast rose by an impressive 10 percentage points to 48.5,” Ms Whittle said.
“This is partly accounted for by the weaker Australian dollar creating a ‘double shot’ for businesses attracting both overseas and domestic tourists.”
More than 750 small businesses across the state were polled.
“Sunshine Coast businesses have responded positively to the change of federal leadership, with Malcolm Turnbull taking over from Tony Abbott in early September,” Ms Whittle said.
CCIQ also noted that businesses had responded encouragingly to closer ties between Canberra and Queensland, with a host of major projects, including Bruce Hwy upgrades and rail, back on the table.
“Confidence in the Queensland economy has moderated, but remains at a fragile level,” Ms Whittle said, of the September quarter results.
“It has consolidated despite the continued resource downturn and drought weighing on business minds.
“State government debt levels, rising business costs and stalled spending on infrastructure continue to feature as a concern for business.
“Businesses have reported lower profitability, in part because of persistently high labour costs, greater competition and slower revenue growth.”
Business performance overall was mixed with conditions rising marginally over the September quarter.
“Interestingly, businesses continue to appear more willing to seek new sources of revenue and reposition their businesses in response to changing trading conditions,” Ms Whittle said.
“There is optimism for the December quarter with forecast improvements across all key performance indicators, including stronger profit growth and continued moderation of labour costs.
“Confidence for the December quarter is encouraging with momentum building with the lead-up to the peak retail and tourism seasons.”
Westpac Group’s Jamie Ritchie, state general manager for small business banking, was pleased with the Pulse results.
“It is encouraging to see small business confidence in Queensland consolidate over the last quarter, which should continue into the holiday period,” Mr Ritchie said.
“When speaking with small business customers they are seeing encouraging signs for the outlook of the state economy, including improvements in housing data, a lower Australian dollar, and a positive employment trend boding well as businesses gear up for the upcoming peak retail and tourism seasons.”
Ms Whittle said the weaker Australian dollar had helped boost sales and revenue especially in the tourism and export-orientated sectors but headwinds persist.