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Australian businesses losing faith in economy

An overwhelming majority of businesses believe that the Australian economy is either slowing or standing still, according to the latest Sensis Business Index Survey.

Australian businesses losing faith in economy
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According to the survey, 32 per cent of the 1,000 respondents believe that the Australian economy is slowing down, with an added 55 per cent of the belief that the economy has effectively ground to a halt.

On a net basis, perceptions of the economy dropped four points to -19, with a negative score registered in every state and territory across the country.

In addition to an overwhelmingly negative perception of the economy, 14 per cent of businesses identified the economic climate as a key concern, compared with seven per cent the previous quarter.

John Allan, Sensis CEO, added that the figures were not entirely surprising.

"Given the recent events on global stock markets and with Australian unemployment on the rise, it is not surprising to see that only 13 per cent of businesses think the economy is growing,” said Mr Allan.

“In South Australia and Western Australia that figure drops to only four per cent.”

As a direct response to the economy post-budget, support for the federal government has dropped dramatically from 17 points to +1, while those of the belief the government policy works against small business doubled from 12 per cent to 24.

‘This survey shows the government has failed to consolidate the support it generated with its popular May Budget. Only in Tasmania was there a rise in support, with that state now by far the most supportive of the federal government,” Mr Allan noted.

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