Roy Morgan Research’s June Business Confidence Report has found confidence remains low in Australia, and it warns this negative sentiment will impact badly on economic recovery.
The survey, conducted among 2,577 businesses across Australia, found confidence levels were at a 10-month low.
Weighting heavily were concerns that Australia’s growth would be slow over the next 12 months. 51% of businesses said they would be reluctant to invest at all.
“The negative sentiment that is impacting most on business and reflected in the low level of business confidence is that there is still a feeling that economic conditions in Australia over the next 12 months will remain poor,” it said.
Other factors included the ongoing European crisis, the impact of the carbon tax, and RBA
’s predicted cuts in interest rates.
It wasn’t all gloomy news – Western Australia continues to be the fastest-growing state in terms of investment, while ‘positive’ industries included education and training, information, media and telecommunications, and finance and insurance.