Victorian business confidence falls despite improved sales and profitability
September 03, 2012
Report author, Christena Singh, said that Victorian business confidence levels had dropped since the highs of last quarter, when Victoria reported the nation’s strongest business confidence and the highest levels of employment, capital spending and exporting in 12 months.
Victoria recorded the largest drop in confidence of any state or territory during the quarter, more than halving from its high point in March this year.
“This quarter has seen more Victorian businesses report an improvement in sales, prices and profitability, however this has been at the expense of employment and capital expenditure and offset by increased wages,” she said.
“There’s no doubt that some businesses are facing tough conditions at the moment, with many saying they are concerned that people aren’t spending, but looking ahead there are signs that business expects conditions to improve in most areas in Victoria over the next 12 months.”
Businesses in Victoria are expecting an increase in sales in the next quarter along with improved profitability, however they are expecting to increase their prices to achieve this. They also plan to reduce capital expenditure.
Nearly five in ten Victorian small and medium businesses are confident about their business prospects over the coming year, whereas three in ten are concerned (up from just over two in ten last quarter).
The key concerns nominated by Victorian small and medium businesses were a lack of work or sales and the economic climate. Small businesses in Melbourne are more confident than their regional counterparts.
Sensis helps Australians find, buy and sell. Our integrated network of local search and digital marketing solutions delivers real, measurable business leads to Australian businesses. Sensis' multichannel network includes Yellow Pages®, White Pages®, the 1234 and 12456 Call Connect voice services, Whereis® digital mapping solutions and request-for-quote service, Quotify.
This increasingly diverse network spans print, online, voice, mobile, iPhone, iPad, Android, Telstra's T-Hub and satellite navigation, and information can also be shared from online to mobile and social networking sites. Sensis helps ensure our advertisers are found by more customers than ever by managing their presence across a growing number of advertising platforms including search engines like Google, Bing and Yahoo!.
® Registered trade mark of Telstra Corporation Limited (ABN 33 051 775 556). Sensis Pty Ltd (ABN 30 007 423 912) has responsibility for production of the Yellow Pages® and White Pages® directories and related products on behalf of Telstra Corporation Limited.
® & ™ Registered trade mark and trade mark of Telstra Corporation Limited (ABN 33 051 775 556).