Gold Coast businesses optimistic in future of state and national economies

Latest results from Chamber of Commerce and Industry Queensland (CCIQ) Pulse Report for the March 2022 quarter show businesses on the Gold Coast reported the biggest jump in confidence off the back of a sharp contraction in the December quarter.

Confidence in the future of the state economy increased 12.8 index points while businesses also invested more in capital expenditure (+3.6 points), increased their employment levels (+3.4 points) and profitability was also up 4.4 index points, however remains at ‘weak’ levels.

CCIQ Policy and Advocacy Manager Cherie Josephson said to see improvements, especially an increase in economic confidence, was encouraging and indicated Gold Coast businesses were starting to see some positive returns.

“We know Gold Coast businesses were among those in the firing line and took a significant hit in the December quarter, so it’s positive to see businesses report increased investment in capital expenditure and improved confidence in the future,” Ms Josephson said.

“Sales and revenue and general business conditions also increased in the March quarter, off the back of a challenging period at the end of 2021.”

Ms Josephson said while employment levels had increased, labour costs also increased to high levels with close to three in five businesses reporting investing more in attracting and retaining staff.

“Borders are open and tourists are returning to the Gold Coast, but businesses need staff to meet that demand and don’t expect to see much wage bill relief in the June quarter,” Ms Josephson said.

“We also saw operating costs increase in the March quarter to high levels with one in two businesses indicating their costs increased and they expect operating costs to increase again in the June quarter.”

Southern Gold Coast Chamber of Commerce President Hilary Jacobs said local businesses were especially impacted under a tight labour market and struggled to find the right people to meet increased local and visitor demand.

“As part of CCIQ’s Regional Policy Committees earlier this year, we heard workforce challenges, particularly due to limited skills migration and international student tourism meant some Gold Coast businesses found it challenging to access the right people to fill roles,” Ms Jacobs said.

The committee also raised the need for developments in transport infrastructure to support opportunities in the lead-up to the 2023 Olympics as well as communication infrastructure to support every day business operations.

“There is significant potential for businesses here on the Gold Coast in the next 10 years and beyond, and now is the time to be supporting them to access those opportunities,” Ms Jacobs said.

“We’re seeing improved confidence in the future of the state and national economies and we’re keen to see that momentum going now businesses are seeing improved general business conditions and sales and revenue as well as in the lead up to the 2032 Olympics.”