Tasmanian business confidence grows, supported by higher prices and profitability
September 03, 2012
There has been a sizeable reduction in negative sentiment compared with the same time last year, with most Tasmanian businesses that were confident about their prospects citing feeling established and experienced in their business operations as the main reason.
Those worried about their prospects were most likely to cite a decrease in business as the main reason for concern, with people not spending also being noted as a key problem. During the quarter more Tasmanian businesses reported increased prices and profitability, however this was offset by a slight decrease in sales and employment and increased wage bills. Capital expenditure was also down, with Tasmania the lowest performing state or territory for this indicator.
Tasmanian small and medium businesses were the most likely of any state or territory to report having increased their prices. Report author, Christena Singh, said that Tasmanian business confidence levels were strong, with more than 5 in 10 businesses saying they had a positive outlook for the year ahead.
“Overall 53 per cent of Tasmanian businesses say they are positive about prospects for their business over the next 12 months, with only 25 per cent reporting a negative outlook, down from 32 per cent a year ago,” she said.
“While there’s no doubt that some businesses are facing tough conditions, there are signs that business expects conditions to improve in Tasmania over the next 12 months.”
Businesses in Tasmania are expecting significant increases in sales in the next quarter along with a big jump in profitability, however they are expected to increase their prices to achieve this. Businesses also expect employment and capital expenditure to improve.
Businesses in Tasmanian metropolitan areas report greater confidence than those in regional areas.
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