Roy Morgan business confidence hits 7-year high

Roy Morgan’s business confidence index has hit a 7-year high despite the ending of JobKeeper.

The index increased 3.2pts (+2.6%) to 124.0, which is the highest level since January 2014 (131.5). It is also 28.9pts higher than it was a year ago at 95.1 in March 2020, representing a 30% increase:

Roy Morgan business confidence

Roy Morgan’s business confidence index has hit a seven year high.

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Business confidence is higher across every state, but is soaring in both Western Australian and New South Wales:

Business confidence is booming in WA and NSW.

Businesses are also increasingly very confident about the Australian economy’s performance over the next year with 61.2% (up 0.6ppts) expecting ‘good times’. The majority (55.5%) also expect ‘good times’ for the Australian economy over the next five years, whereas 59.4% believe the next 12 months is a ‘good time to invest in growing the business’.

A majority of all businesses 52.6% also expect they will be ‘better off’ financially this time next year, whereas only 14.8% expect to be ‘worse off’ financially.

Commenting on the results, Roy Morgan CEO Michele Levine noted:

“For the first time since May 2018 all five components of the index are well into positive territory with optimists outnumbering pessimists by at least 10% points on each”.

These findings add to the weight of evidence pointing to a V-shaped recovery for the recovery.

Full report here.

Unconventional Economist

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