Business confidence in insurance plummets by 32%

Full-service research organisation Roy Morgan has published Aussie business confidence numbers for August. While registering the first increase since the RBA began its interest rate hike four months ago, business confidence was at its lowest level for the finance and insurance sector at 68.8, a 33-point plunge (-32.4%) from the previous year.

Business confidence increased on a monthly basis by 1.1 points to 96, driven by more confidence (43.5%) about the performance of the economy over the next five years and businesses becoming increasingly confident (41.2%) about their prospects over the next 12 months. Still, the overall number marked a 5.4% dip in business confidence from the previous year.

Three industries registered a ‘very low’ business confidence – more than 20% below the national average score of 95.5 – for August. Finance and insurance was the lowest at only 68.8, followed by electricity, gas, and water at 71.5 (-35.1%), and retail at 73.2 (-37.7%).

“Although those indicators are moving in the right direction, businesses are increasingly concerned about the short-term performance of the Australian economy with a majority of 58.3% expecting ‘bad times’ for Australia’s economic performance over the next year,” said Roy Morgan CEO Michele Levine.

The index was down from last year in all states except NSW, which saw a business confidence increase of 8.8% and now has the highest business confidence of any state.