NEW data shows business confidence on the Central Coast and in Lake Macquarie is significantly higher than the state average, but the results could be misleading, the NSW Business Chamber Central Coast has warned.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Energy costs, the impact of the drought, and uncertainty over the NSW and federal elections had contributed to subdued confidence felt by business owners across the state, NSW Business Chamber Central Coast regional director, Paula Martin, said.
The findings have been tabled in the latest quarterly survey by the NSW Business Chamber.
“It is now clear from successive surveys that business conditions have become more challenging and that momentum has slowed,” Ms Martin said.
“For the state overall, business confidence is down with businesses facing tougher trading conditions as the NSW economy faces headwinds from international markets, volatility in the housing sector and rising operating costs,” Ms Martin said.
“While the NSW economy is leading the nation, the challenge for the next government of NSW is to keep the state moving forward.”
The quarterly survey report lists a business confidence index for regions across NSW in the December quarter.
A negative number indicates surveyed business owners considered conditions to be weaker than in the previous quarter. A positive number implies conditions had improved.
The statewide business confidence index was -3.1.
On the Central Coast, the survey results showed an index of +22. There were 43 respondents to the survey from the region.
In Lake Macquarie and Newcastle, the index came in at +22.5. There were 42 respondents there.
“A quick glance at results for the Central Coast might suggest that confidence is rising and doing better than the state average. That’s misleading, though,” Ms Martin said.
“It’s not unusual for confidence to lift [for the December quarter] as the holidays approach - we get more visitors to the region and that’s good for business.
“But while confidence picked up in the quarter, the lift is much lower for this time of year than is usual.”
The survey found the Central Coast had an unemployment rate of 5.7 per cent. The state unemployment rate was 4.4 per cent.
Youth unemployment on the Central Coast was at 14.2 per cent. The state rate was 9.8 per cent.
In Lake Macquarie and Newcastle, the unemployment rate was 5.5 per cent, and the youth unemployment rate 10.5 per cent.
Ms Martin said it was critical for government to have the right policies in place to support business.
“With the state election now less than two months away, it is vital that those parties looking to form the next government understand the true nature of current business conditions and just how important it is to have policies that assist business to invest and create new jobs,” she said.
NSW Business Chamber would campaign on a platform of “Keeping NSW Number 1”, she said.
The chamber has identified four priorities for government:
- skill NSW for the future and tackle youth unemployment;
- cut energy costs for NSW businesses and residents;
- improve the delivery of major infrastructure; and
- protect NSW from natural disasters.