Agribiz confidence hits record highs
July 27, 2009
Queensland agribusiness is heading into the next 12 months with heightened confidence, according to the Westpac and Charles Sturt University (CSU) Agribusiness Index.
The quarterly survey is used to calculate the Economic Performance Index (EPI) based on the average of results for business performance, employment and investment indicators.
The EPI ranges from -1 (worst result) to +1 (best result) where a "satisfactory" result is when the EPI is zero.
Queensland’s EPI lifted by five points to +0.10 in the June quarter, the highest level on record.
As a result, confidence about the next 12 months outgrew all other states, lifting 10 points to a record 85 percent.
On a national level, business confidence for the next 12 months rose 4 points to 72 percent.
Westpac’s Chief Executive of Agribusiness, Graham Jennings, says prospects are looking good, following strong economic performance in the June quarter.
"In summary, the survey shows that confidence is up, economic performance is up, employment is up and agribusinesses in Queensland are spending more on capital," he says.
Westpac and CSU Agribusiness Index survey co-ordinator Tom Murphy explains the government is behind the increase in capital expenditure.
"It appears that the Federal Government’s accelerated depreciation allowances has encouraged agribusinesses in Queensland to invest in its capital requirements now, with the majority spending on equipment and machinery.
"No doubt the increased capital expenditure has also been assisted by the positive outlook agribusinesses have in the future," Murphy says.
He says the outlook for the September quarter is also positive, reflecting a turnaround in business attitudes.
"Australian agribusiness expects their economic performance to improve slightly, with agribusinesses in New South Wales and Queensland the most improved, expecting their performance to lift to the highest level on record. Queensland agribusinesses expect a further rise in their economic performance from the very good result for the June quarter," he says.