Queensland businesses remain pessimistic on average

Queensland businesses remain a relatively pessimistic bunch, based on the latest data from the Westpac-CCIQ Pulse Survey, which I have previously argued is the most reliable data on business confidence in Queensland (see my post from June). CCIQ’s media release from last Friday emphasised the boost that the ascension of Malcolm Turnbull appears to have provided to confidence in the national economy, and certainly Queensland businesses are more optimistic about the national economy than the Queensland economy (see chart below showing the percentages of Queensland businesses which expect the State and national economies to be weaker, the same or stronger).

Pulse_Sep15

The Pulse survey data highlight the ongoing poor 12-month outlook for the Queensland economy, with confidence at an index level of 42.1 compared with a neutral level of 50. CCIQ remains optimistic, however, and is perhaps trying to talk up the economy, noting in the survey report that “Queensland businesses are expressing optimism about the State’s economic growth prospects, with business confidence remaining steady…” Also, CCIQ is encouraged by a pick up in expected business conditions in December quarter 2015 to an index value of 47.7 from 45.0 in September quarter, which is a welcome sign although it would still be below a neutral level of 50.

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