Business confidence hits record low in April

By Katherine O'Chee · · 5 min read
Fact Checked
Advertiser disclosure

Optimism among Australian businesses remains weak amid COVID-19, with new research showing nearly 3 in 4 don’t expect the economy to fare well over the coming year. 

The latest Roy Morgan Business Confidence poll, based on 1,191 detailed interviews, found business confidence during April dropped to a record low for the second month running. 

On the Roy Morgan index, confidence fell by 19% to 76.9 points. 

In April, more Aussie businesses (65%) said they were in a worse financial position now than this time last year. 

And they didn't feel reassured about the future either. Almost half of respondents saw 2021 as a bad time to invest in business growth, compared to just one-third who thought the opposite. 

Looking further ahead, the report also recorded a rise in the number of businesses who believed the Australian economy won’t recover any time soon. Over half of respondents expected its poor performance to continue over the next five years. 

This plunge in confidence came as stringent social distancing measures introduced by federal and state governments were in place throughout April. 

Such measures have drastically affected business operations, with recent Commbank research showing they caused an even sharper decline in business activity over April than the month prior. 

Three-stage plan: A ray of hope ahead 

Despite these findings, the Roy Morgan report hinted there is light at the end of the tunnel. 

Notably, business confidence began to climb back up halfway through April, amid news of the curve flattening and the Morrison Government proposing a three-stage plan out of coronavirus lockdowns.

As Roy Morgan’s chief executive, Michele Levine explained, “[the] good news is business confidence bottomed in the first half of the month and has since improved.” 

During the second half of April, confidence averaged 82.0 - up from 69.3 in the first two weeks.

Levine added that Aussie businesses last month also felt more certain they could get ahead of the downturn. 

"Perhaps surprisingly, Australian businesses were growing more confident in April about their own prospects, with 43% [of respondents] expecting the business to be ‘better off financially’ this time next year - up 3.6 ppts from March,” she said.

Next steps for your business

With the first set of restrictions set to lift over the coming weeks (timing will depend on the state), some businesses are preparing to reopen. 

Under step one of Morrison’s plan, cafes and restaurants will be allowed to seat 10 patrons at a time, given that they abide by the four square metres per person rule. Retail stores will also open, along with hairdressers and barber shops which must record their customers’ contact details.

Step two will involve double the numbers of patrons allowed in cafes and restaurants. A host of other businesses will also be permitted to open with up to 20 customers at a time, including cinemas, indoor gyms, galleries, massage and beauty therapy clinics and tattoo parlours.

Step three will see the maximum gathering size increase to 100. 

If you’re looking for extra finance to help kickstart operations again and get your  enterprise back on its feet, a business loan could help. 

Right now, you can snatch up a competitive deal, thanks to the series of business loan rate reductions following the March RBA emergency rate cut. 

Securing additional working capital should also be easier under the government’s SME Loan Guarantee Scheme, which guarantees 50% of all eligible unsecured loans of up to $250,000 and will run until 30 September. 

Interested in taking out a business loan today? Get started with these options below.

Compare business loans - rates updated daily

Search promoted business loans below or do a full Mozo database search. Advertiser disclosure.

Refine the list of business loans

Let’s help find you a great business loan...
  • About Great Southern Bank
    Business+ Unsecured Loan

    A simple way to fund your business’s big plans. Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with the Business app. Enjoy a fast approval process. $495 establishment fee.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 11.95% p.a. to 22.95% p.a.
    $495
    Varies
    Go to site
    Details
  • About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $2,000,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    3%, starting at $399
    from 3 hours
    Go to site
    Details
  • About Lumi
    Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

    Interest Rate
    Upfront Fee
    Funding speed
    from 9%
    -
    Within same day
    Go to site
    Details
  • About Great Southern Bank
    Business+ Unsecured Overdraft

    Manage the cash flow in your business with ease. Access up to $50,000 without using your assets as security. Lending criteria apply. Access your available limit from your linked Business+ Account. Use your Debit Mastercard for added convenience. Interest is charged on your balance owing, not your limit. Easy online application. $495 establishment fee.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 14.95% p.a. to 25.95% p.a.
    $495
    Varies
    Go to site
    Details
  • About ScotPac
    Boost Business Loan - powered by Business Fuel

    Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.

    Interest Rate
    Upfront Fee
    Funding speed
    from 14.00% p.a.
    Details on application
    From 24 hours
    Go to site
    Details

For more tips, check out our article on money moves to help your business survive coronavirus.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.