Townsville business confidence hits high note

Business confidence continues to gain momentum in Townsville, hitting a 15-year high in the latest PVW Partners quarterly Business Confidence Survey. The survey for the June 2022 quarter showed an increase of 3.6 points to 13.4. “The June 2022 quarter result is the highest we’ve seen business confidence in Townsville in 15 years and is the second highest result in the 30-year history of our survey (this highest result being recorded in June 2007),” PVW Partners managing partner Carl Valentine said. The June 2022 quarter survey was conducted in early March 2022 - before this week's Federal Budget and significant local announcements, like the funding for the Hells Gates Dam. “In some cycles, the spectre of a Federal Election can create uncertainty and dampen confidence, however that would not appear to be the case at this point in time," Mr Valentine said. "Our local businesses have a full head of steam and are making the most of the best economic conditions we’ve seen in recent times. While the index was currently at a particularly high level, the average level of confidence in the past five years was 6.1 – compared to an average of only 0.1 in the previous five years. The latest survey also asked Townsville’s business owners and managers to share their expectations on the upcoming Federal Budget. PVW Partners managing partner Carl Valentine. “Given the current low levels of unemployment it was not surprising that expectations for wages subsidies to support jobs growth were muted, however we would expect that as wage bills grow in line with inflationary pressures, any government support to reduce wage costs would likely be welcomed by business, especially when so many other business inputs are becoming increasingly costly,” Mr Valentine said. “While many of us would like to see reduced personal tax rates, less than 25 per cent of the respondents expect personal tax relief to be part of this year’s Federal Budget. "There was more confidence that business tax incentives would continue to be a feature of Federal Government policies with over half of the respondents expecting business tax incentives to be maintained at current levels or potentially increased.” More than 70 per cent of the respondents saw regional infrastructure spending as the highest priority in the upcoming Federal Budget, with spending on families and welfare being seen as a more moderate priority, he said "Somewhat surprisingly, spending on defence related initiatives in our region was seen as a lower priority against infrastructure, job creations and families and welfare.”

Townsville business confidence hits high note

Industry Queensland

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