Business confidence returns to pre-COVID-19 levels – consumer confidence at highest level in 12 months

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Healthcare jobs are not the only area proving resilient post-COVID.

Business confidence recorded its fourth consecutive monthly gain in November, rising 9 points to 12 index points in November on the back of interest cuts and easing restrictions in Victoria.

Business conditions jumped 7 points to 9 index points.

Victoria and NSW led the way, with wholesale the only industry where conditions declined.

The news comes as the latest ANZ-Roy Morgan Consumer Confidence survey increased 1.8 points to 109.3 – its highest level since November 2019.

The results are being driven by increasing confidence about the long-term prospects for the Australian economy, according to the researcher.

17% of respondents said they expect ‘good times’ for the Australian economy over the next 12 months while 21% (down 2%) said they expect ‘bad times’ (the lowest figure for this indicator for over eight years since March 2013).

In the longer term, 27% (up 3%) are expecting ‘good times’ for the economy over the next five years (the highest figure for this indicator since mid-March this year) compared to only 13% (up 1%) expecting ‘bad times’.

“The GDP release last week suggests that the economy is set for an earlier than expected return to pre-COVID levels, something that would have buoyed sentiment. The headline consumer confidence is now at its highest level in 2020,” ANZ Head of Australian Economics, David Plank, said.

The question is: will Australians maintain their confidence into 2021 – and will it filter through to the aged care and retirement living sectors?

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