PVW Partners Townsville Business Confidence Survey June 2019

MEDIA RELEASE- 8th May 2019
Townsville Business Confidence Strengthens

The PVW Partners Quarterly Townsville Business Confidence Index has strengthened significantly in the June 2019 quarter, bouncing back from the declining trend in confidence that has prevailed over the past 12 months.

PVW Partners Managing Partner Carl Valentine said the overall confidence of the Townsville business participants had increased by eight index points.

“This is a significant shift in the confidence of local business operators and can be attributed in part to increased business activity in some sectors following the February disaster event,” Mr Valentine said.

“Of course, many businesses were adversely impacted by that disaster and continue to struggle to restore their operations.

“Interestingly, when respondents were asked if they believe the disaster event will hold back Townsville’s long-term economic prosperity or deliver long-term economic prosperity for the region, more than 56 per cent of respondents indicated they believe the flood will help to provide economic prosperity to Townsville.

“64 per cent of businesses with a turnover of less than $10 million believe sales will increase, while 95% per cent also indicated they expect to retain their existing employees or employ more staff.

“With a huge spike in activity for some trades and accommodation providers, it is certainly no surprise to see confidence picking up in the small business sector.

Mr Valentine said to have 64% of smaller business respondents report an expectation of sales growth in the coming quarter is without precedent in the history of the index and, if those expectations are realised, bodes well for our smaller business sector and our economy more broadly given the massive contribution small business makes in our region.

“It was a slightly different picture for those businesses with a turnover of more than $10 million; while 56% per cent expect to see an increase in sales, only 80% per cent believe that will result in the same or greater level of employment opportunities in their businesses,” he said.

“That could be a case of those larger businesses having capacity within existing teams to absorb the increased workload or a reflection that the disaster has disproportionately impacted those larger businesses.”

Mr Valentine said while the survey results are in positive territory, the trend remains volatile, albeit it’s pleasing to see the overall positive trend from about March 2016 continuing.

“It will be important that our region continues to attract job generating projects in the medium to long term, to keep our economy strong following the post-flood injection of works.”

 [ENDS]

Media Contact: Casie Scott, 0432 453 225 or email casie.scott@pvwpartners.com