TEC Index reveals confidence from WA business

CEOs and owners from 79 per cent of Western Australian businesses with a turnover of $100 million-plus expect sales revenues to increase over the next 12 months, according to The Executive Connection’s national confidence index for November.

In addition, 53 per cent of respondents believe total fixed investment expenditures are likely to increase, while 45 per cent expect their organisation’s total number of employees to increase over the same time period.

WA business is less concerned with with falling business conditions, with only 29 per cent worried compared to 51 per cent nationwide, according to the index.

The index also reveals that, overall, 53 per cent of Australian businesses expect their profitability to improve, while 37 per cent expect it to stay the same.

“This quarter’s results again provide an invaluable insight into the key issues facing the small and medium business community, their general confidence about the Australian business climate and some of the ways these issues play out in different states,” TEC chief executive Nikki Potter said.

“It’s interesting as we head into the Christmas and New Year period that expectations around sales revenues over the next 12 months were optimistic when compared to our previous survey in August.

“65 per cent of the surveyed CEOs and business owners around the country expect an increase, compared to 56 per cent in the last quarter - this was more pronounced in larger businesses with 72 per cent of those with a turnover of over $100 million optimistic about what’s ahead for them and their businesses.

“This is another important insight for politicians, policymakers and regulators about the general feeling and mood amongst Australia’s business community and hints at the sort of year they are expecting in 2014.”

The TEC Confidence Index is TEC’s quarterly Australian survey measuring the confidence of its members, Australia's top-performing business leaders.