Queensland business confidence down
Business confidence in the Queensland economy has weakened over the past six months but fingers aren't pointed at the state government's job and service cuts, a survey shows.
The Chamber of Commerce and Industry Queensland's quarterly survey of over 500 businesses revealed business confidence in the state's economy has weakened marginally over the September quarter and the majority of businesses expect a further minor weakening over the twelve month outlook.
"Whilst business confidence in the Queensland economy has weakened on the previous two quarters results, which can be collectively viewed as a post-election and out of trend swing, the overall long term picture remains one of little change," the survey said.
Businesses continue to report soft sales, profitability, employment and investment outcomes, which are consistent with a downbeat national and international economic environment.
The most significant and emerging issue at present for the state economy is the weakening mining outlook, with its peak now anticipated to be sooner and not as high, the survey says.
Despite the predictions by many, changes to the state's public sector are not having a material impact on business confidence.
The majority of businesses, 75 per cent, have experienced no impact to date from the state government job cuts and 69 per cent report no impact resulting from reduced government spending.
However, 23 per cent and 32 per cent have been impacted by job cuts and spending cuts respectively.
The majority of these businesses have however indicated that the state governments actions are warranted and deemed necessary to put business in a better overall position in the coming few years," the report on the survey said.
CCIQ chief executive Stephen Tait said overwhelming majority, 87 per cent, of Queensland businesses indicated support for the state government's job and spending cuts, which were found to have a lesser influence than global uncertainty, low consumer spending and fears over the mining outlook.
"Whilst we appreciate that certain businesses may be impacted, the reality is that the direct financial impact for the majority of businesses across the state is negligible," he said in a statement.
Treasurer Tim Nicholls said the businesses in the survey know that fixing the state government's finances will lead to increased consumer confidence and more opportunities in the long term.
"The report makes the point that changes to the public sector are not weighing on confidence," he said in a statement.