Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Falling Sales and Profitability Pound Confidence

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Falling Sales and Profitability Pound Confidence

Article excerpt

ALMOST one in two Queensland businesses expects the state's economy to weaken during the next 12 months, according to the latest Commonwealth Bank CCIQ Pulse Survey.

The survey revealed a deepening pessimism over the state of the economy spurred by concerns over government policies, including the carbon tax, and rising business costs.

The survey found confidence in the Australian economy contracted below the 50 basis-point mark for the first time since the economic downturn in late 2008 with the Pulse Index falling sharply from 53.5 in the March quarter to 40.8.

Key findings: 47% of businesses expect the state's economy to weaken during the coming 12 months; 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 21.4% raised concerns over the rising cost of doing business due to 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.

C[pounds sterling]Since the global financial crisis began in 2008, Queensland businesses have identified the current level of economic activity as the No.1 constraint on their business' growth. The fact that this has not changed in three years means urgent action is required,C[yen] CCIQ president David Goodwin said.

C[pounds sterling]These cost pressures are forcing businesses to close in local communities and that employment is going to be the next casualty of the Government's inability to keep costs down across the economy.C[yen]

Commonwealth Bank general manager of corporate financial services Mark Toon said there was no doubt business was doing it tough. …

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