Study says business gloom deepening

THE release of the VECCI ‘Survey of Business Trends and Prospects’ for the December 2008 quarter has revealed that Victorian business confidence has plunged to its lowest level since the survey started in 1994.
Shadow Treasurer Kim Wells said the survey showed that 83 per cent of Victorian businesses expect the state’s economic performance to be weaker over the next 12 months compared to 14 per cent having that expectation 18 months ago. Business leaders expect to tighten their belts even further ahead of worsening economic conditions leading to significant reductions in investment and jobs.
More than one in five employers expect a further decline in jobs growth.
And almost one in five employers anticipate a reduction in plant and equipment investment, which does not bode well for future employment levels.
Victoria is heavily reliant on manufacturing and wholesale and retail trade relative to other states, but the survey reveals that we have seen a significant collapse in business confidence in these vital sectors.
“When business confidence collapses in these critical industry sectors that is not a good long-term sign for Victoria,” Mr Wells said.