Business Confidence Continues to Edge Up

PVW Partners’ latest Business Confidence Change Index shows continued positivity within the Townsville business community, with confidence rising a further 1.3 points. This sentiment of cautious optimism is a welcome development as local businesses navigate ongoing economic pressures.

Sonia Chalk, Partner at PVW Partners Accounting and Advisory firm, highlighted the positive trend: “Many indicators from our latest Business Confidence survey suggest that the majority of businesses expect their resource needs to remain steady or improve slightly as we approach the end of 2024.”

While businesses are grappling with significant challenges—such as household budget constraints, staffing shortages, high interest rates, and rising material costs—they are demonstrating resilience and adaptability. "It’s clear that businesses are evolving to stay responsive in this uncertain economic environment," added Sonia Chalk.

PVW Partners’ Townsville Business Confidence Survey, which began in 1991, has now been running for over 30 years, serving as a unique barometer of the confidence levels within the local business community. This latest survey brings encouraging news, particularly for the hospitality industry.

“A notable positive trend is the anticipated increase in business spending on entertainment over the next quarter,” Sonia Chalk revealed. “This cyclical surge, tied to end-of-year functions and Christmas celebrations, marks the highest level of spending since 2014. For hospitality businesses—many of which are battling staffing shortages, rising insurance premiums, and power costs—this could come as welcome relief. However, the potential introduction of paid parking in our key entertainment districts is expected to put additional pressure on venues in those key areas.”

The survey also revealed strong opposition to the introduction of paid parking, with most respondents believing it should be limited to areas with a genuine need to manage parking demand. There is a prevailing sentiment that Townsville City Council should focus more on improving productivity than generating new revenue. Sonia Chalk explained, “Businesses feel that paid parking is being used as a revenue-raising tool rather than a necessary measure to manage parking demand, with little confidence in how the Council is currently allocating its resources to enable it to better live within its means as other businesses and households are forced to do.”

A minority of respondents acknowledged that paid parking in key areas was inevitable as Townsville grows, aligning the city with other major urban centres and ensuring contributions to the maintenance and upkeep of busy precincts.

Sonia Chalk concluded, “While Townsville businesses continue to face widespread challenges across all industries, those that are able to adapt are remaining buoyant in these uncertain times. It’s reassuring to see businesses doing their best to stay resilient and optimistic about the future.”