Iron plunge rattles confidence
Confidence among small and medium businesses in WA has slipped amid gloom about the falling iron ore price, according to a new poll.
The Sensis Business Index survey found while sentiment remained positive, it had slipped nine points when business owners were interviewed in March from four months earlier.
WA’s net balance — the difference between positive and negative responses — was two points better than the national average but below NSW, the Northern Territory, Victoria and Tasmania.
“The falling iron ore price has hit business confidence hard,” Sensis chief executive John Allan said.
“Speaking with Perth businesses recently, there are concerns about what impact the mining downturn will have on support industries across the board,” Mr Allan said.
He said confidence in regional businesses remained surprisingly positive.
Nationally, Mr Allan said a lack of work or sales, consumers not spending and the economic climate were weighing on owners’ minds.
The building and construction sector had the lowest confidence with a net balance of +10, and hospitality the highest with +46.
“The decrease in value of the Australian dollar has no doubt had an impact, with more Australians choosing to holiday within the country rather than overseas,” Mr Allan said.
The survey polled 1000 business owners nationally, including 118 in WA.
