May Business Confidence shows usual post-Budget decline to 117.1

Original article by Roy Morgan
Market Research Update – Page: Online : 4-Jun-18

In Australia, Business Confidence fell 1.5pts (-1.3%) to 117.1 in May 2018, according to the latest Roy Morgan Business Single Source survey. Business Confidence traditionally falls in May following the Federal Budget. Business Confidence has now decreased in seven out of eight years in May, although the decline of 1.3% this year was the smallest May decline on record. Despite the overall fall in confidence, businesses are more confident about the performance of the Australian economy; 54.4% (up 1.8ppts) expect "good times" for the Australian economy over the next year, and 53% (up 1.6ppts) say the next 12 months is a "good time to invest" in growing the business. Roy Morgan CEO Michele Levine says the Federal Budget rewarded taxpayers with income tax cuts but businesses are still waiting for the Turnbull Government’s promised cut to the company tax rate from 30% to 25%. In addition to the disappointments surrounding the Federal Budget, the increase in the minimum wage will provide a further deterrent to businesses thinking of hiring young and unskilled staff and increase their endeavours to cut employment costs by implementing new and more cost-effective ways of doing business.

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ROY MORGAN LIMITED, AUSTRALIA. FAIR WORK COMMISSION

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