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Roy Morgan is one of the most respected and leading research houses out there and certainly a data source the market relies on.
And their business confidence report is one of the most closely watched… because well… jobs, jobs and jobs! Oh yeah, and also business spending and investment.
Suffice to say business confidence has plunged again last month.
Naturally, the fall in July was driven by businesses becoming increasingly concerned about Australia’s economic prospects.
70.8% said they expected ‘bad times’ for the economy over the next year and 59.9% expected ‘bad times’ for the economy over the next 5 years.
Overall, the July 2020 Business Confidence level was 29.7 points lower than both the level it was a year ago, and the long-term average of 114.0.
And take a look at business confidence by industry:
No surprises that every industry is feeling the brunt of COVID, apart from Transport, Postal and Warehousing.
Given the rise in online shopping and everyone staying at home, this is to be expected.
I’m a bit miffed why retail, down to 60.9 and wholesale, down to 78.7, failed to make the chart.
Maybe it would have been too depressing of a read?
Similarly when it came to individual states, there was a strong correlation with my earlier post on State of the States:
Only thing I can summarize is that right now, a lot of business owners are in a world of pain, and will likely continue to be in for a whiles yet.
But we already knew that didn’t we?
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