Business confidence in Townsville has firmed moving into the new year, and the city is backing mining as continuing to provide a key foundation for its economic strength.

That is according to PVW Partners’ March 2024 quarterly Business Confidence Survey, which saw a lift of 1.7 in the confidence index to 5.6.

Sonia Chalk, a partner at the accounting and advisory firm, said capital expenditure by businesses remained strong and in alignment with the previous quarter, which was up from the September and June 2023 quarters. 

“The confidence in capital expenditure may be a result of interest rates now holding steady and greater clarity around the opportunities within our region for businesses to take advantage of,” she said. 

“This response was further backed up by the results to our additional question regarding the future of mining and its impact on the Townsville economy. 

“Eighty-nine per cent of our respondents say that mining will continue to have a similar if not larger and more active role in our economy into the future.

“These results are pleasing in the context of mixed announcements for our mining and minerals processing sector in 2023 – from the excitement of CopperString 2.0 to the concerns created by Glencore’s Mount Isa Mines.”

The global mining heavyweight in October last year announced plans to shut down its long-time Mount Isa Mines underground copper mining operations in the second half of 2025.

PVW survey participants were asked to select one of five options that most closely reflected their perspective on the regional mining sector over the medium term:

1. There is no future in mining – Townsville’s economy and its businesses should be actively diversifying away from that sector (Proportion of respondents who selected this option represented in green bar on the graph at right).
2. Mining and mining services are likely to play a smaller role in Townsville’s economy over the medium term (dark blue bar).
3. Mining and mining services will continue to play a similar role in Townsville’s economy as it has done over recent history (yellow bar).
4. Mining and mining services are likely to play a larger role in Townsville’s economy over the medium term (aqua bar).
5. Mining has a bright future – Townsville’s economy and its businesses should be actively building in that sector (orange bar).

The PVW Partners Townsville Business Confidence Survey has now been running for more than 30 years. The survey is sent out to 600 Townsville business owners and managers.

Ms Chalk said that while the Townsville region was still not back to the confidence levels recorded in 2021 and 2022, there had been a continued upward trend in business confidence over the last 18 months. 

The March 2024 survey was conducted prior to TC Jasper and TC Kirrily.

“Whilst the region’s confidence has continued to be strong, the end of 2023 and start of 2024 brought two natural disasters to our Northern region,” Ms Chalk said.

“These events will inevitably have an economic impact to our region, with grants and assistance already being announced to mitigate at least some of the effects these events have had.

“In addition, with the federal budget looming, announced plans to revise the stage 3 tax cuts and local and state elections, 2024 is shaping up to be another evolving year which will require businesses to continue to build on the strong foundations from 2023 and to take advantage of opportunities that are currently within our region.”