Rising Confidence Fuels Growth

TOWNSVILLE BUSINESSES POISED FOR A PROSPEROUS FUTURE

Now in its 33rd year, the latest results from the PVW Partners’ Business Confidence Survey shows undeniable confidence, with the index rising to 8.3—a remarkable 3.4-point increase from the December 2024 quarter and the highest score since September 2022. Historically, the March quarter tends to outperform December in business confidence, and this year is no exception.

One of the main contributors to this confidence is that no respondents plan to reduce their capital expenditure budgets. The survey has not seen levels like this since pre 2009.  This signals a strong sense of opportunity within the local business community. Sonia Chalk, Partner at PVW Partners, shares, "As inflation starts to stabilise, there’s growing anticipation that interest rates will decline over the long term, paving the way for a more supportive climate for capital investment."

Additionally, 97% of respondents plan to maintain or increase their spending on promotion and advertising and staff training. Sonia believes this trend reflects businesses gearing up for growth, using advertising and promotion as powerful tools to drive stronger sales in the short term and upskilling their staff to handle the increased growth.

This is further backed up by the number of businesses expecting to maintain or increase sales with this quarter's result being the highest since September 2021.

Queensland's newly elected LNP Government may also be contributing to this rise in business confidence, sparking a renewed sense of optimism and opportunity among local businesses.

The survey’s special question explored the potential impact of the new LNP government, and the response was overwhelmingly clear with 88% of respondents believing the new government will positively influence their businesses directly and indirectly.

Sonia attributes this to key policies and initiatives already resonating with the community and business owners such as the "Making QLD Safer” campaign which is aimed at reducing crime and therefore associated costs of car, home and business insurances.

Further the government’s commitment to streamlining efficiencies across its operations is welcomed by taxpayers eager for smarter, more effective governance. In addition, the temporary suspension of the use of “Best Practice Industry Conditions" on government-funded construction projects is projected to save billions while accelerating the delivery of critical infrastructure.

Adding a personal touch to this optimism is Premier David Crisafulli’s deep connection to regional Queensland, having grown up in Ingham, a town currently devastated by flooding.  These results were obtained prior to the onset of the current monsoon conditions in our region, and the impact of these conditions is still unknown.

However, with the survey’s strong results and businesses confidence in the change in government, the latest survey paints a promising picture for the business community. As confidence continues to build, businesses in Townsville appear well-positioned to embrace growth opportunities in the months ahead.