WA business confidence hits record high

Business confidence is at a record high in Western Australia, according to a WA Chamber of Commerce and Industry (CCI) survey.

The CCI March quarter survey of business expectations released on Wednesday found more than 63 per cent of respondents tipped the WA economy to strengthen over the next 12 months, up from 58 per cent the previous quarter.

The latest figures were the highest on record, according to the CCI, and come just a year after business confidence hit at a record low, with only six per cent of respondents expecting economic conditions to strengthen.

The CCI said the more positive outlook meant firms were looking to expand operating capacity over the next 12 months.

Capital spending plans rose for the fourth consecutive quarter in March, with almost 27 per cent of respondents planning to raise their level of investment in the year ahead.

Labour market conditions are also improving, according to the CCI survey, with 27 per cent of respondents hiring more staff in the March quarter - the fourth quarterly rise in a row - and 38 per cent looking to raise their workforce in June.

More than a quarter of respondents found labour scarce in December, with a further 32 per cent expecting workers to be difficult to find in the June quarter.

This was still well down from the three quarters of businesses that were unable to find staff during 2007 and 2008 resources boom.

However, the rebound in labour market conditions has come at a cost, with more than 37 per cent of respondents reporting their wages bill had risen, while 33 per cent had experienced an increase in non-wage labour costs.