FRASER HOSES DOWN ECONOMIC PESSIMISM
28 July 2011,
DESPITE a comprehensive survey of Queensland businesses today revealing a deepening pessimism over the economy, Treasurer Andrew Fraser says investment in the state has in fact reached a historical peak.
Commonwealth Bank CCIQ Pulse Survey findings:
- 47% of businesses expect the state’s economy to weaken during the coming 12 months. As a result, the overarching Queensland Pulse Index fell from 46.8 to 41.0.
- 38% of businesses experienced weaker sales during the past three months, while business profitability continued to weaken with the Pulse Profitability Index falling to 38.0 from 38.5 in the previous March quarter.
- 39.8% of businesses raised concerns about how the carbon tax would affect consumer and business confidence and business costs and competitiveness.
- 32.3% suggested confidence in the federal and state governments was at very low levels and this was having a significant impact on the economy.
- 21.4% raised concerns over the rising cost of doing business due to continual increases in business taxes, fees and charges, the increases in government regulation and red tape, and other rising costs such as interest rates and utilities charges.