An increasing number of businesses in Western Australia are becoming more confident about the local economy's prospects with some saying the current economic climate has been good for business.
An increasing number of businesses in Western Australia are becoming more confident about the local economy's prospects with some saying the current economic climate has been good for business.
In the latest Commonwealth Bank - Chamber of Commerce and Industry WA Survey of Business Expectations, signs are starting to emerge that the WA economy will start to recover from the downturn in the next 12 months.
The survey found the improved outlook for the economy has given businesses across the state confidence to pursue or re-consider investment plans for the first time in over a year.
CCIWA said almost one in five respondents intend to expand their operations in the year ahead.
While the proportion of businesses believe economic conditions will improve over the next 12 months has doubled, a majority of firms are still of the view that the local economy will weaken in the year ahead.
On the other hand, respondents have once again reported that the current economic conditions in Western Australia are positive for their business, providing further encouragement that the State is well placed to ride out the worst of the global slowdown.
"Business and the broader community can take heart from the survey results. Improved business confidence and a renewed appetite by firms to expand their operations provide an early signal that an economic recovery is on the horizon." CCI chief economist John Nicolaou said
The survey also found that the cost of doing business in WA has continued to fall.
"The improved ability of businesses to recruit quality labour at lower wage levels in the current market is a welcome confidence boost for the WA business community," Commonwealth Bank's general manager corporate financial services WA Greg Caust said.
"Put this together with the major projects we have on the horizon here in WA, investment plans for businesses will start to hit the agenda again."
The challenging economic conditions have also forced a large number of firms to assess their labour needs.
Nearly one-in-three respondents have cut staff over the past three months. In another sign conditions will start to improve in the near term, nearly one-in-four businesses say they plan to hire more staff in the next few months.
With labour market conditions stabilising, the ability of businesses to attract and retain the workers they need has improved to levels never before seen.
The survey canvassed 570 firms across a range of industries.
