Release Date: 22/10/2013
PEAK employer body, the Tasmanian Chamber of Commerce and Industry (TCCI) says business confidence is improving even though actual conditions remain unchanged and at a low level.
TCCI Chief Executive Michael Bailey said the Australian Chamber of Commerce and Industry’s (ACCI) October Survey of Investor Confidence shows a significant improvement in national business expectations with the index moving into positive territory for the first time in two years.
Mr Bailey said the survey highlighted that while business expectation indicators had improved dramatically, all actual trading condition indicators remained relatively unchanged at low levels.
The TCCI was currently conducting its quarterly Tasmanian Survey of Business Expectations and this would provide a state view of economic and business conditions.
“At a national level, it is concerning that we are yet to see the recovery in business sentiment translating into improvement in actual trading conditions since the global financial crisis,” Mr Bailey said.
“Business hiring and investment intentions are also expected to remain subdued for the final quarter of 2013 and early 2014.
“While the outcome of the September Federal Election has buoyed business sentiment, manufacturing and construction industries continue to report weak performance, despite the official cash rate remaining at its historical low.
“The national survey highlights the challenges facing the Australian economy transitioning from resources-led growth to a more broad-based growth and it will be interesting to see the results of our Tasmanian survey.
“Like past Tasmanian findings, the national survey showed business taxes, government charges and regulations as the biggest constraints on business growth. This issue must be addressed by all levels of government.”
Mr Bailey said the abolition of carbon tax would play an important role in reducing business costs and the bills to repeal the tax should be passed as the first order of business when the new national Parliament meets in November.
“Australia is still facing stiff economic headwinds and the policy indulgence represented by the carbon tax has no economic and environmental merit and it needs to be abandoned,” he said.
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