Gold Coast Pulse Briefing Session - Summary

THE GOOD:

•Business sentiment across the Gold Coast was below the state average in the September quarter

•The latest CCIQ Pulse Survey saw the recovery of business sentiment continue to improve in line with some promising economic data released during the previous quarter

•Most business indicators returned to a satisfactory level

•Performance based indexes remain challenged under the current operating conditions

•future confidence for economic performance remained at a poor reading (<40)

THE Bad:

•Below the surface of the improved index readings lies the proportion of businesses that are experiencing weaker business conditions

•Particularly across the economic outlook, general business conditions and profitability indexes, more business are still experiencing weaker conditions

•Cost indicators will continue to increase as businesses reopen and stimulus support is dropped

THE ugly:

JobKeeper payment (62%)

• Payment due to be reduced in January 2021
• Payment due to end in March 2021

Payroll tax relief (27%)

• Payment deferrals ending December 2020
• Rent relief (15%)
• Legislation ending December 2020
• Payment deferrals commencing as per negotiations

Concessional loans (11%)

• Repayments to start in March at the earliest

Only 1% of businesses are confident in their long term viability when stimulus support ends…

Optimistic view:

• More businesses are confident that they will have 12-months to be recover when stimulus support ends

Pessimistic view

• On 1% of businesses are confident in being able to operate past 12-months without stimulus support
• Confidence has dropped sharply from the last quarter where 42% were confident that their business was operating viably.

Balanced view:

• The consensus is that businesses will require more certainty and action from the government to combat the ongoing COVID-19 crisis over the next 12 months

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