CONFIDENT businesses spend more money.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
That is the big plus Ben Foley sees in the increased optimism in the regional and wider economy.
The Murray-Riverina NSW Business Chamber regional manager said manufacturers had led the way.
They made up about 18 per cent of regional respondents to the state chamber’s latest Business Conditions Survey.
Others sharing the positive vibe included retailers and the trade and education and training sectors.
“There is a renewed sense of optimism because for the past six months we’ve really had a lot of businesses looking to see what the federal government was going to do,” Mr Foley said.
Because of the long wait between the election and handing down the budget, he said many businesses just got out there and had a real go at improving their lot.
“It was as if the government kept their legs under the table for far too long,” he said.
Mr Foley said confidence was fundamental to further growth.
“Businesses that are optimistic about the future spend more money, employ more staff, purchase more capital, buy more equipment,” he said.
He said some businesses believed they benefited from a strong tourist economy.
But when cafes and restaurants did well, they in turn spent more money on everything from accounting fees and recruitment to employing tradesmen.
“And then that impacts on the whole regional economy,” he said.
Businesses reported they were keen to reduce waste, increase efficiency and productivity and increase sales for products and services through better marketing.