Business confidence at 2 year high.

Monday 18 March 2013

Article by Mozo

Businesses in Australia have growing optimism and confidence on the outlook of the economy, investing and business bank accounts in the coming years.

Business man viewing business banking glass half full

Research by Roy Morgan shows that in February 2013 business confidence was at its highest in almost 2 years, increasing by 1.3 points since January, up to 123.8 points. Almost three quarters of Australian businesses now believe that the next 5 years will be mostly smooth sailing.

"Business confidence has continued to rise in February with the prospect of a change of Government and a number of positive factors impacting on the business outlook," says Norman Morris, Industry and Communications Director at Roy Morgan Research.

Although all industries are showing scores over 100 points, indicating an optimistic outlook, they do not share the same levels of hope. Agriculture, Forestry and Fishing showed to be struggling the most with no signs of improvement in February at 104.4 points followed by Manufacturing and Construction both with 111 points.

The industries with the most positive outlook were Finance and Insurance (139.7 points), Education and Training (133.8 points) and Health Care and Assistance (130.5 points), all of which have pushed ahead of Mining (124.2 points). However, WA was still the most optimistic state, ahead of Victoria and New South Wales.

"Despite the current positive business outlook it remains to be seen whether this trend can be sustained as the stock market is likely to react very quickly to any negative news either overseas or locally plus the potential for 'distractions' caused by the lead up to the federal election," said Mr Morris.

Businesses gearing up for the good times ahead, looking to borrow or optimise their bank accounts should compare business banking products to ensure they get the best deals on their finance.

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