Confidence slips

Confidence slips

BUSINESS confidence in the Western Australian economy has suffered its third straight quarterly fall.

The latest Commonwealth Bank – CCI Survey of Business Expectations shows more than a quarter of respondents believe conditions will deteriorate further in the September quarter, up from 14 per cent in March.

The survey’s index of trading conditions fell to its lowest level since the height of the global financial crisis, with just 18 per cent of respondents saying the operating environment was good – the lowest proportion in more than two years.

Sixty per cent of employers surveyed reported an increase in the costs of their materials during the quarter with 37 per cent pointing to staff costs other than wages (allowances, bonuses and workers compensation premiums) as a further burden.

They also remain concerned about the impact of continuing high wages bills with 40 per cent indicating they, too, had risen over the June quarter.

Continued difficulties in finding staff is also hampering growth with over 50 per cent of employers indicating they expected a further deterioration in availability over the coming quarter.