The race to form a government is in its last few weeks, but business confidence remains steady according to ANZ’s latest Business Outlook Survey.
Activity, employment and investment expectations all remain at healthy levels with good GDP growth and inflation softening, the bank says.
About 18% of businesses are optimistic about the year ahead – slightly down on last month, while in seasonally adjusted terms business confidence actually lifted, from +27 to +30.
“Firms are campaigning on good growth for their own business, and are keen to hire and invest.”
A net 38% of businesses expect better times ahead for their own business, well ahead of the the long-running average of 28%.
Overall, ANZ says changes in the economy are coming, but the general trend is positive.
“While housing, the construction sector more broadly, tourism and net migration appear to be topping out, other growth drivers such as record-high terms of trade, a fiscal impulse and buoyant household income are stepping up.
“Changes in business confidence and the consumer equivalent will be key gauges to assess how smoothly this transition is set to take place.”
