BUSINESS CONDITIONS AND CONFIDENCEREMAIN DEEP IN NEGATIVE TERRITORY
The January 2013
ACCI Survey of Investor Condence
shows that most actual and expected business indicatorsremain deep in contraconary territory over the December quarter of 2012, with some indicators falling to theirrecord low levels since the Survey began in 1998. With the excepon of
Expected Unemployment Rate
, allindicators remain below their ve year averages over the quarter.
While the current indexes of
Own Business Condions
(p.6) improved overthe December quarter, business expectaons for these three indicators have connued to decline to their newrecord low levels. These readings indicate that business senment remains extremely weak for the rst quarterof 2013, despite recent improvement in business trading condions.The index of
Expected Number of Full-Time Employees
(p.8) fell to its new 15-year low over the quarter, indicangbusiness hiring intenons over the rst half of 2013 remain anaemic.
While actual index of
Naonal Economic Condions
(p.10) recovered marginally from its historic low inDecember, the indicator for
Climate for Investment
(p.11) connued to fall to its lowest level in the survey’s15 year history. Their expectaon indicators for the rst quarter of 2013 have connued to decline to theirlowest levels since June 2009, indicang that businesses are becoming increasingly pessimisc aboutAustralia’s economic performance and the climate for business investment.Over the next twelve months, business expects price pressure (p.13) to remain contained, consistent with anexpected fall in interest rates (p.14). It is concerning that the unemployment rate (p.13) for the next twelvemonths only fell marginally from its recent peak and economy-wide wage growth (p.14) is expected to remainelevated, despite recent falls.
Quarterly Constraints on Investment
ACCI’s quarterly index of
Constraints on Investment
(p.3) found that
Business Taxes and Government Charges
remained the largest constraint on business investment for the 18th successive quarter. It is concerning thatgovernment regulatory requirements have inhibited business capital expenditure plans, with
Federal Government Regulaons
Local Government Regulaons
increasing to the third and eighth posions respecvely, while
State Government Regulaons
remaining the h largest impediment on business investment.
ACCI Survey of Investor Condence I January 2013