SunshineCoastRegionalReport2ndQtr2004

BUSINESS CONFIDENCE
OVERVIEW


BUSINESS OVERVIEW
  Business confidence in Queensland grew strongly in the May Quarter 2004 and was the second highest in
 the nation. However the perception of the economy one year from now has declined strongly from the level
                                    recorded in the May Quarter 2003.

                                                                                             Small and Medium Business, Queensland
                                                                                                                               Net Balance                                change on
                                                                                                                               May-04 (%)                                   May-03
                                                                                       (a)
                                                       Business Confidence                                                              73                                        9
                                                       Perceptions of the Economy
                                                            Now (b)                                                                          37                                      13
                                                            One Year from Now (b)                                                            14                                     -12
                                                       Attitudes to Qld Govt Policies (c)                                                    -5                                       3

                                                       Actual Experience During:                                            Net Balance                                  change on
                                                                                                                         Feb-Apr 04 (%)                                 Feb-Apr 03
                                                       Sales Value (a)                                                               29                                         30
                                                       Size of Workforce (a)                                                          6                                          2
                                                       Wages Bill (a)                                                                11                                          4
                                                       Prices (a)                                                                    16                                         -4
                                                       Profitability (a)                                                             25                                         32
                                                       Capital Expenditure (a)                                                        3                                         -2

                                                       Expectations For:                                                    Net Balance                                  change on
                                                                                                                          May-Jul 04 (%)                                May-Jul 03
                                                                        (a)
                                                       Sales Value                                                                    34                                        -4
                                                       Size of Workforce (a)                                                          13                                         7
                                                       Wages Bill (a)                                                                 17                                         1
                                                       Prices (a)                                                                     26                                         0
                                                       Profitability (a)                                                              29                                        -6
                                                       Capital Expenditure (a)                                                         1                                         2

                                                       Notes: (a) Net Balance is defined as the difference between the percentage with a positive outlook and the percentage with a
                                                       negative outlook. (b) Net Balance is defined as the difference between the percentage of small businesses reporting an increase
                                                       and the percentage recording a decrease. (c) Net Balance is defined as the difference between the percentage with a positive
                                                       attitude and the percentage with a negative attitude. (d) All changes are point changes (e) The most recent figures relate to both
                                                       medium and small business.
                                                       Source: Yellow Pages Small Business Index, Sweeney Research



                                Queensland Confidence Trends
                  75
                  70
                  65
                                                                                                           Queensland business confidence grew strongly in the May Quarter 2004
                  60                                                                                       in comparison to the May Quarter 2003 and was the second highest in the
                  55                                                                                       nation. There was an improvement in current perceptions of the economy,
                  50
                                                                                                           but a more negative outlook towards the economy one year from now.
Net Balance (%)




                  45
                  40
                  35
                  30
                  25
                  20
                  15
                  10
                   5
                   0
                       May-99    May-00      May-01            May-02         May-03           May-04



                  70
                           Perceptions of the Economy - Queensland
                  60
                                           Now     A Year From Now
                                                                                                           Queensland recorded the strongest sales performance in the March
                  50                                                                                       Quarter 2004, with 29% of businesses recording an increase in sales over
                  40                                                                                       the quarter and higher profits for 25% of small and medium enterprises.
                  30                                                                                       The employment outlook also appears favourable, with 13% of businesses
Net Balance (%)




                  20
                                                                                                           expecting to employ extra staff in the June Quarter 2004.
                  10

                  0

              -10

              -20

              -30

              -40

              -50
                       May-01   Nov-01    May-02      Nov-02       May-03       Nov-03         May-04




©0, Sunshine Coast Regional Economy, Second Quarter 2004                                                                                                                                    - 21 -