Business Confidence hits 7-year high

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Roy Morgan’s business confidence survey hit a seven year high in May, increasing 4pts (+3.2%) to 129.3 – the highest reading since January 2014 (131.5). This follows a whopping 39.4pts (+43.8%) increase on May 2020 when Australia was gripped by the coronavirus pandemic:

Roy Morgan business confidence

Business Confidence in May 2021 was 15.5pts above the long-term average of 113.8 and over two-thirds, 69.2%, expect ‘good times’ for the Australian economy over the next 12 months and a clear majority of 58.8% of businesses said the next 12 months is a ‘good time to invest in growing the business’…

Business Confidence has now averaged 124.0 during the first five months of 2021, the best start to a year for the Index for a decade since 2011 – during the middle of the ‘Mining Boom’ when the index averaged a record high of 130.3 from January – May 2011.

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About the author
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.