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Business Confidence up in July to 117.0 driven by Agriculture, Construction, Information, Media & Telcos

Source: Roy Morgan Business Single Source, Dec 2010–Jul 2017. Average monthly sample over the last 12 months=1,000.

In Australia Business Confidence rose 5.2pts (+4.7%) to 117.0 in July, according to the Roy Morgan Business Single Source survey and most businesses (56.2%) say now is a good time to invest in growing the business.

The rise in Business Confidence was driven by strong increases in several industries including Agriculture, forestry & fishing, Construction, and Information, media and telecommunications which reached a record high.

The rise in Business Confidence mirrors a strengthening weekly ANZ-Roy Morgan Consumer Confidence Rating which increased by 5.9pts (+5.2%) in the last two weeks of July to 118.4.


Monthly Business Confidence -- Australia

Roy Morgan Business Confidence - July 2017 - 117.0Source: Roy Morgan Business Single Source, Dec 2010–Jul 2017. Average monthly sample over the last 12 months=1,000.


Business Confidence up across the board with all five indices rising in July

  • Business Confidence increased in July on the back of rising expectations of the Australian economy with a majority of businesses now expecting ‘good times’ for the economy in both the short-term – 52.7% (up 5.8ppts) and long-term – 51.2% (up 1.6ppts);

  • Expectations for their own businesses have also increased with 44.5% (up 5.8ppts) saying the business is ‘better off’ financially than this time last year and 47.4% (up 3ppts) expecting the business to be ‘better off’ financially this time next year;

  • In further good news now 56.2% (up 2.9ppts) of businesses say the next 12 months will be a ‘good time to invest’ in growing the business compared ot only 35.9% (down 0.2ppts) that say it will be a ‘bad time to invest’.


Michele Levine, CEO Roy Morgan Research, says Business Confidence has moved passed any concerns about the Federal Budget and is rising strongly in tandem with a strengthening AUD:

“Business Confidence rose 5.2pts (+4.7%) in July to 117.0 to reach its highest level since last year’s Federal Election. The increase in Business Confidence follows a softening in recent months which we often see around the time of the Federal Budget in mid-May.

“Business Confidence isn’t the only indicator now pointing firmly in a positive direction with the ANZ-Roy Morgan Consumer Confidence Rating increasing strongly in the past two weeks of July to hit a five-month high of 118.4 and the Australian Dollar reaching two-year highs above 80 US cents in the past week.

“Unsurprisingly, most Australian States were up strongly in July led by Queensland and South Australia – which now has Australia’s highest Business Confidence. The strong increase in South Australia came after Silicon Valley businessman, and CEO of Tesla electric cars Elon Musk, promised in a joint press conference with South Australian Premier Jay Weatherill in early July to deliver a cutting edge battery development to solve the State’s well-publicised energy woes.

“Driving Business Confidence higher are strong increases in several industries including Agriculture, forestry and fishing, Construction, Public administration, safety and security, Electricity, gas, water and waste (following Musk’s announcement) and Information media and telecommunications which has hit a record high in July.

“Most industries moved in a positive direction in July, however there were two notable lagging industries – both Finance & Insurance and Administration & support services dipped below 100 against the overall trend and will be worth keeping an eye on to see whether they quickly bounce back.”

Roy Morgan July Business Confidence results are based on 991 interviews with a cross-section of Australian businesses. Business Confidence is still clearly below the 7yr average (116.4).


For comments or more information please contact:

Michele Levine
CEO
Office: +61 (3) 9224 5215
Mobile: 0411 129 093
askroymorgan@roymorgan.com