Australian business confidence is on the up, according to a new report.
18 June 2009
Boost to business confidence good news for Australian Business Visa
Australia has had a massive jump in business confidence despite actual conditions staying around levels not seen since the 1991/92 recession, a new report shows.
The announcement is good news for international business owners considering buying a firm or starting a new company in Australia or those already in Australia on the Australian Business Visa.
The Sydney Morning Herald has reported the index of overall business conditions contained in a survey by the Australian Chamber of Commerce and Industry (ACCI) and Westpac rose 3.9 points to 38.3 in the June quarter.
A level below 50 indicates more respondents are suffering a contraction in business activity than an expansion.
"It does indicate some signs of economic improvement and it may indicate that we have bounced off the lows of the March quarter,'' ACCI's acting chief executive Greg Evans said.
The index of labour market conditions improved by eight points to minus 25, but remains well below a decade positive average of six.
"That is still at a level that's historically consistent with a sharp slowing in jobs growth through the second half of this year,'' Westpac senior economist Anthony Thompson told reporters.
He said the survey was also consistent with a jobless rate of eight per cent.
Business sentiment, however, bounced by a strong 57 points, the largest improvement since 1975, to a reading of minus four.
It was the highest outcome since the December quarter of 2007 and compared with a decade average of minus six.
The jump in confidence was encouraged by "green shoots'' of a global recovery, the relative resilience of the Australian economy, improved housing indicators and a reduction in the perceived difficulty of obtaining finance, the report said.
Mr Evans believes there is scope for further official interest rate reductions over the next six months by the Reserve Bank of Australia, but there are more limited opportunities for fiscal policy.
He said the 30 per cent investment allowance for large business should be extended to the end of the year, allowing a further six months for businesses to take advantage of the initiative.
Australia is well placed in the currently global economic crisis and is increasingly being seen as a good destination for those wanting to emigrate to Australia from the UK. According to the Australian Government, nearly half of the Australian population was either born offshore or has at least one parent who was born offshore, meaning that most of the 21 million who call Australia home are first or second generation migrants.
UK residents have a number of avenues to immigrate to Australia including an Australian Business Visa.