BUSINESS CONFIDENCE ON THE RISE – ACTIVITY TO REMAIN SOLID
The July 2007 SAI Global / ACCI Survey of Investor Confidence shows that business continued to perform well, trading conditions have strengthened and confidence in the national economy is high. The State Within Own Business indicator, which gauges overall conditions for each business, remains at near-record levels and businesses are expecting record levels of activity and sales. Expected levels of Investment increased to its highest level since July 1994. Furthermore, wage growth has eased significantly over the past nine months.
The survey covers the months of April, May and June 2007 and had 1204 respondents, covering the following industries: mining, manufacturing, construction, retail/wholesale trade, accommodation, cafes and restaurants, and services.
Mr. Greg Evans, Director of Industry Policy & Innovation, Australian Chamber of Commerce and Industry, commented:
“This survey shows that business conditions recovered strongly and are on track to deliver sound economic growth over the remainder of this year. While business is performing well, the number one constraint remains finding suitably qualified staff. Additionally, wages and non-wage labour costs were also seen as constraints on investment. Four out of the top ten constraints are linked with government regulation and taxes or charges, involving all three tiers of government. This clearly demonstrates that regulatory reforms and easing the burden on business should be top priorities for governments.”
Mr Ross Wraight, Chief Executive, SAI Global, commented:
“It is not surprising that government regulation and taxes or charges remain a major constraint on business when you consider that law makers – all nine of them - are pumping out often conflicting legislation at twice the rate of 20 years ago. Associated with this, compliance matters can consume up to 25% of the time of senior management and boards of large companies.”
“Regulation can also stifle innovation and crowd out productive activity in the ‘engine room’ of Australia’s economy. It also involves substantial government resources and can be significant burden on taxpayers.”
A link to the survey is available on: www.acci.asn.au.
For Further Information:
Mr Greg Evans
Director of Industry Policy & Innovation – ACCI
02 6273 2311 / 0407 204 559
Mr Tom Godfrey
Director, Public Affairs, SAI Global
0414 191 034
tom.godfrey@sai-global.com
Mr Brett Hogan
Director, Communications, ACCI
03 9668 9950 / 0407 273 884
