The latest business confidence survey from Roy Morgan Research reveals that business confidence continues to creep downwards in Australia - with levels of optimism reaching their lowest point in two years.
According to Roy Morgan's June 2014 poll, business confidence was down 6.2 points from May to reach 108.1. This continues the downward trend first observed following the release of the budget earlier this year, and is 28.2 points under the high of 136.3 recorded in October last year (just after the introduction of the new government).
In fact, this is the lowest level since June 2012, when business confidence was rated a measly 105.4.
According to Roy Morgan, the main driver of this drop in confidence was fewer businesses believing that economic conditions here would improve. Additionally, just over half (52 per cent) of businesses surveyed feel that the next 12 months "would be a good time to invest in growing their business".
Of particular concern was that businesses in some of Australia's most vital industries, such as manufacturing, recorded the lowest level of confidence. The level in manufacturing, for instance, was just 106.6.
Norman Morris, industry communications director at Roy Morgan Research, added that the low level of confidence is also affecting small business finance, with fewer business owners inclined to borrow to fund growth.
"The low level of confidence in the economy picking up over the next five years is subduing the appetite for business expansion and borrowing, which is not good for economic growth and recovery," he said.
"Not only are businesses becoming less inclined to borrow but they are also having issues dealing with banks, with the Roy Morgan Business Bank Satisfaction showing that they are well below the satisfaction level of the banks' personal customers."
In tight circumstances such as these, seeking alternative forms of business finance, such as debtor finance, can ensure your business keeps growing in a sustainable manner even when confidence is low.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].