Business confidence has fallen to its lowest level in almost three years, according to Roy Morgan’s latest monthly survey.
The Roy Morgan Business Confidence Index slipped to 88.8 points in June, compared to 90.3 points the month before and 97.3 points the year before.
That is the lowest reading since September 2020 and well below the long-term average of 112.0 points. A score of 100 is neutral; anything lower is negative and anything higher is positive.
Looking at a state-by-state breakdown, all but one state recorded negative confidence in June:
- Western Australia = 141.1 points (was 98.8 points the year before).
- New South Wales = 87.9 (was 101.3).
- Queensland = 86.1 (was 94.1).
- Tasmania = 79.6 (was 104.3).
- South Australia = 79.2 (was 95.0).
- Victoria = 74.5 (was 90.6).
Businesses backing themselves, but down on the economy
Ironically, the businesses surveyed in June were still broadly positive about their own prospects: 41.1% expected to be better off financially in a year’s time and 25.7% worse off.
However, businesses were broadly negative about the outlook for the economy, with 62.2% expecting bad times over the next 12 months and only 35.6% expecting good times.
At the same time, 45.0% believed the next 12 months would be a good time to invest in growing their business, while 48.3% believed it would be a bad time.
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