New CCIQ report provides in-depth examination of Queensland economy
The Chamber of Commerce and Industry Queensland (CCIQ) today unveils one of the most detailed examinations of the Sunshine State’s economic performance.
This new monthly report, Queensland Economic Update, will be crucial reading for the state’s 410,000 small businesses, industry groups, government departments and politicians at all three levels.
It will offer an ongoing examination of key indicators, covering labour, finance, construction, retail and demographics, delivering a much needed source of data and information for Queensland businesses.
The first report, September 2016, shows Queensland’s economy has turned a corner for the first time in several years – but there is still plenty of room for significant improvement in many areas.
“The level of caution being exercised by consumers, as indicated by weak retail spending and household consumption is indicative of the soft conditions currently being experienced by businesses in many sectors of the economy,” the report summary reveals.
“While the rise in State Final Demand is welcomed, it is also important to indicate that it will take some time for this to transfer through to improved labour market conditions, with the Queensland unemployment rate remaining steady at 6.3 per cent, and well above the national average.
“While indicators do suggest improving conditions, there is still further work required in restoring confidence in the economy, and encouraging a return to spending on goods and services.
“This is still required if there is to be a sustained improvement in profitability across Queensland businesses that will enable further improvements in both private sector investment and job creation.”
CCIQ Director of Advocacy Nick Behrens said the report would ensure a regular release of information relating to the numbers that matter to Queensland businesses.
“At CCIQ we know that numbers matter, and when planning for the future businesses need fact not spin,” he said.
“We are committed to improving the potential of businesses across Queensland and this can only be achieved by providing the business community with data and statistics that will assist them to make good, strategic decisions.
“This monthly report will draw together a number of key economic indicators to deliver a complete picture of how Queensland is performing historically, but also relative to other states.”
Mr Behrens said CCIQ would draw on latest data releases from the Australian Bureau of Statistics, and other Federal and State Government reports, plus our own exclusive quarterly Suncorp-CCIQ Pulse Survey of Business Conditions, which has been collecting valuable information from Queensland businesses for more than 20 years
“Depending on who you talk to, Queensland is either the best performing state in Australia, or is experiencing significant challenges,” he said.
“Driven by all this data and offering evidence-based commentary, our monthly economic report will ensure that businesses will receive objective information on the state of play in Queensland.”
Mr Behrens said that the first report highlighted that while Queensland had turned a corner, there was still significant room for improvement across many parts of the economy.
“While there is some indication that the Queensland economy is beginning to recover, it is still below the long term trend, and continues to lag behind New South Wales and Victoria,” he said.
“The key economic indicators that have been released across the past month are encouraging, but the level of caution in consumer spending does suggest that further work is still required in restoring confidence in the Queensland economy.”
Mr Behrens said that as long as there was spare capacity in the labour market, any economic recovery would be slow.
“Queensland’s unemployment rate of 6.3 per cent sits significantly higher than the national average of 5.7 per cent,” he said.
“It is only through a sustained improvement in profitability across Queensland businesses that the necessary conditions will be created to enable further improvements in both private sector investment and job creation.”
Some of the key statistics contained in CCIQ’s first Queensland Economic Update include:
• State Final Demand – rose by 0.7 per cent.
• Government Capital Expenditure – rose by 6.8 per cent.
• Private Capital Expenditure – rose by 0.9 per cent (first rise since September 2013 Qtr).
• Household consumption – rose by 0.2 per cent (below national average).
• Unemployment – unchanged at 6.3 per cent, but higher than national rate of 5.7 per cent.
• Retail trade – rose by 1.5 per cent, weaker than national average (2.7 per cent) and well below ten-year state average trend (4.4 per cent). This weak trend will have implications for Christmas sales.
• Clothing, footwear and personal accessories – rose by 8.7 per cent, above national average
• Building approvals –fell by 1.9 per cent
• Real wage growth – rose by 0.4 per cent
• CCIQ 12-month Queensland economic outlook – fell to 42.3 percentage points (7.2 points below the five-year average).