Business confidence has returned to a healthy level of 115.3, lifting 10.2 percent as lockdown ends in Melbourne and Sydney.
The 10.7 point jump is a clear indication that businesses are feeling the relief of leaving lockdown across Victoria, NSW and the ACT.
Business confidence is now back above the 2021 weekly average of 113.8. The last time this figure was above the average was in July this year.
This is a great sign for retailers, who have been closed for much of the year. According to the Australian Retailers Association and Roy Morgan, Australian consumers are expected to spend $58.8 billion on retail goods in the pre-Christmas period.
“Business Confidence increased 10.7pts (+10.2 percent) to 115.3 in October and there were solid increases in all three jurisdictions that emerged from long lockdowns over the last few weeks. Business Confidence in NSW was up 8.1pts (+7.8 percent) to 112.9 and up 10.9pts (+11.5 percent) to 105.8 in Victoria.,” said Michele Levine, the CEO of Roy Morgan.
“There was good news for businesses reliant on tourism in both Queensland and Tasmania which announced their domestic borders would be coming down in mid-December,” she said. “Overall Australian businesses are growing more confident about the next year with a majority of 55.1 percent (up 4.7ppts) now expecting ‘good times’ for the economy over the next year and 55 percent (up 7.6ppts) saying now is a ‘good time to invest’ in growing the business.”
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