Original article by Michele Levine, Roy Morgan
Market Research Update – Page: Online : 14-Mar-19
The lack of jobs growth over the last year will be a significant concern for the Federal Government, which is due to seek re-election at a Federal election expected in mid-May. As well as the lack of employment growth over the past year the latest Roy Morgan Business Confidence rating for February of only 105.6 – the lowest since August 2015 – indicates Australia’s businesses are waiting for the political uncertainty to clear in a few months’ time. The consecutive ratings below 110 are the slowest start to a year for Business Confidence since the index began. The latest Australian GDP figures showed the economy growing by only 0.2% in the December 2018 quarter, the slowest rate of growth for over two years since a quarterly contraction of 0.5% in the September 2016 quarter. Given the political uncertainty facing Australia over the next two months, with a New South Wales election later in March before the Federal election expected in mid-May, the prospects for the economy and employment growth in the short-term appear to be limited. However, the Federal Government has a chance to ‘reboot the economy’ with a stimulative Federal Budget due to be delivered on the first Tuesday in April. The Budget is also the Morrison Government’s last chance to save their chances of re-election as the Roy Morgan Poll, and other polls, have consistently shown the ALP heading towards an easy election victory.
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