Economic Outlook
The economic outlook for Ballarat businesses and industry in both the short-term and long-term future is strong, according to the results of the most recent Business Confidence Survey.
In particular, confidence in the performance of our local economy increased over the September 2005 quarter, with the majority of respondents (over 83%) indicating that it outperformed their expectations. Furthermore, over 66% of respondents indicated that they expected moderately better or substantially better business performance. For local businesses who export, over 80% indicated that they expected their export sales to remain the same or increase over the next 12 months.
Increased fuel prices was the number one issue effecting business performance, with most survey respondents indicating an across the board reduction in profitability. The second most important issue to businesses and industry was interest rates, with a significant number of respondents (40%) indicating that any rise in interest rates would have a negative impact on their business.
While changes to Industrial Relations (IR) Laws is currently a contentious issue in Australia; the majority of respondents (65%) indicated that it would not adversely impact their business performance.
Business Confidence Survey Report
According to the most recent release of unemployment figures from the Federal Department of Employment and Workplace Relations; the number of people entering the Ballarat workforce has significantly increased, and the number of unemployed persons has decreased.
During the September 2005 quarter, the total number of employed persons in the Ballarat labour force rose by 2,012 people, taking the total to 44,114. This is the highest labour force participation figures in Ballarat for over four (4) years.
Over the same period, the official unemployment rate in Ballarat fell by 1.2% to 6.6%, which is significantly better than for the September quarter last year, when the unemployment rate was 7.9%.
Furthermore, our local unemployment rate is below the regional Victorian State average (6.7%), demonstrating that Ballarat is performing well compared with other regional areas across the State.
The median house price in Ballarat during the September 2006 shows a slight decrease by 0.5% from $212,000 to $211,000, which also represents an overall decrease of 0.5% compared with the same period last year.
The median rental return on a Ballarat house during September 2006 quarter represents an overall annual increase for three bedroom house of 10% from the September 2005 quarter.
The median rental return on a Ballaratunit/apartment during the September 2006 quarter represents an overall annual decrease of 1.8% for a three bedroom unit from the September 2005 quarter.
When considered together - strong job growth, improved confidence in our local and national economies, declining unemployment, affordability and capital growth in our residential property market – these economic indicators demonstrate a healthy and confident economy.
Further Information
For further information on the state of the local economy, please contact Tourism and Economic Development on 5320 5500 or tourism&economicdevelopment@ballarat.vic.gov.au