In January 2020 Roy Morgan Business Confidence dropped 2.9pts (-2.8%) to a nearly nine-year low of 101.6. Business Confidence has only been lower during the last decade when it briefly dipped below the neutral level of 100 in July 2011 (99.8) during the height of the European sovereign debt crisis.
Driving the fall is a broad-based decline in sentiment about the performance of businesses. Now only 34.5% (down 6.4ppts) of business leaders say their business is ‘better off financially’ now compared to a year ago and 44% (down 6.4ppts) expect their business to be ‘better off financially’ this time next year.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
