Region's business conditions improving, according to survey
WHILE business conditions have surged in Central Queensland, it may take several quarters of improved sales before profitability really improves.
Chamber of Commerce and Industry Queensland general manager of advocacy Nick Behrens (pictured) said the results marked the end of a long disconnect between confidence and the actual trading environment.
"We saw a huge surge in confidence after the federal election in the September quarter but it took a few months to realise that confidence in other indicators like sales revenue and business conditions," he said.
According to the CCIQ Westpac Group Pulse Survey of Business Conditions for the December quarter, general business conditions rose 5.9 points to sit at 51.7.
It also revealed CQ was one of the only regions in the state to record an increase in profitability, but it still sits below the 50 point mark at 47.1 percentage points.
"Realistically, we anticipate it will take several quarters of improved sales before the profitability indicator really improves, dragging capital expenditure with it," Mr Behrens said.
"But businesses have indicated - while the signs were there for a significant improvement on last year - there were still some factors that must be addressed."
The drought, which is negatively impacting the agriculture sector's supply chain, has left many Queensland businesses hoping for more rain in coming months.
In the December quarter:
- General business conditions rose 5.9 points to sit at 51.7.
- Increases were recorded across all indicators except average wages, indicating the high business confidence experienced last quarter is starting to be positively reflected in other business indicators.
- Profitability is higher in the Central Queensland region compared to the state average, with a profitability index of 47.1 compared to 43.5. This represents an increase of 8.1 percentage points from last quarter.
- All indictors have been forecasted in positive territory for the coming March quarter, except for capital expenditure.