Business Confidence Dips

Townsville’s latest Business Confidence Survey, conducted by PVW Partners, has revealed a slight easing in local confidence with a drop from 10.3 points to 9.2 this quarter.

PVW Partners Managing Partner, Carl Valentine said the softer confidence has resulted mainly from an expected decrease in sales and consumer demand.  This could be a reflection in timing of the survey, which was completed before confirmation of both Federal and State Government support for Glencore’s Mount Isa Copper Smelter and Townsville Refinery.

“When the survey was released, Glencore’s future was uncertain which may have prompted some cautiousness from businesses,” Mr Valentine explained. “It will be interesting to see how sentiment shifts in the next quarter now that Glencore’s support has been confirmed.  In addition to this, the Townsville mayoral by-election result should be known which will hopefully add to Townsville’s confidence.”

While businesses are showing restraint in discretionary spending areas such as capital expenditure and advertising and promotions, the survey revealed underlying optimism for the hospitality industry with expected increases in travel and entertainment.

“Businesses are anticipating a healthy uptick in spending on travel and entertainment in the lead-up to Christmas,” Mr Valentine said. “It’s a common theme for this time of the year which should assist the hospitality section, many of which are juggling staff shortages and rising costs.”

Despite some caution, PVW Partners notes that the region’s long-term outlook remains resilient, buoyed by ongoing investment and the community’s proven ability to adapt to changing economic conditions.

“The North Queensland pipeline, valued at around $47 billion, is a tremendous source of optimism for our region,” said Miranda Mears, President of Townsville Chamber of Commerce. “We’re seeing major investments and infrastructure projects already underway or in planning stages, from future expansion of the Port of Townsville to the development of infrastructure across the west. When you combine that with the significant impact of Mount Isa’s resource projects, it’s clear these developments will strengthen regional connectivity and deliver far-reaching benefits for businesses across Townsville and North Queensland.”

Now in its 34th year, the PVW Partners Townsville Business Confidence Survey continues to serve as a trusted barometer of business sentiment across North Queensland.

This quarter’s special question explored the biggest challenges businesses expect to face over the next 24 months. The results identified the 2 biggest ongoing barriers to growth and long-term success to be Cost control in an inflationary environment and Staffing issues, including talent acquisition, retention and upskilling.

While confidence may have dipped slightly this quarter, Townsville’s business community remains forward-looking, supported by major regional projects and the promise of a stronger 2026 outlook.