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