Townsville Robust Amidst Global Uncertainty

The latest results from the PVW Partners Business Confidence Survey show the outlook for the June 2025 quarter is broadly optimistic.

Despite heightened economic uncertainty across Australia, business sentiment remains robust throughout the Townsville region. The local economy is showing signs of strength and stability, with many businesses forecasting growth in key performance drivers such as sales, consumer demand, and employment in the coming quarter.

Sonia Chalk, partner at PVW Partners has noted that “sales confidence has surged by 27 points, while consumer demand has risen by 22 points. These significant indicators signal a positive trend.”

In contrast, discretionary spending on air travel, entertainment and advertising are expected to follow typical seasonal patterns, with a modest decline anticipated. While this cyclical downturn slightly tempers the broader confidence index, it is not considered a negative indicator within the context of the survey. As a result, the Business Consumer Change Index has recorded a slight increase, rising from 8.3 in the previous quarter to 8.9 this quarter.

At the time of data collection, U.S. President Donald Trump had not yet announced the specifics of his proposed tariff policies. While this uncertainty has caused volatility in global markets, local businesses appear well-positioned to weather the potential economic turbulence. Though Trump’s actions have impacted the ASX—particularly affecting retirees and investors—only 16% of survey respondents believe his policies will have a noticeable impact over the short, medium, or long term.

Sonia says “It remains to be seen how these developments may affect exports through the Port of Townsville, as well as inflation trends and potential interest rate adjustments”.

In addition, with a Federal Election looming any potential impacts or shifts in sentiment relating to the election are not yet captured in these results.

Overall, the June 2025 quarter presents a cautiously optimistic landscape for businesses across the region.