Conditions worsening, survey shows

The National Business

RESULTS from a business survey conducted by the ANZ Bank shows that there has been a deterioration in business conditions since the start of the year.
The results show:

  • Sales volumes fell in the first quarter of 2020;
  • Profitability of firms worsened in the March quarter;
  • Business confidence about future economic conditions (next 12 months) turned from a net positive last December to a net negative in first quarter of this year;
  • Expectations for future capital expenditures on buildings and structures, plant and equipment deteriorated in first quarter, as did plans for new hires; and,
  • Uncertainty about the Covid-19 pandemic was a factor in businesses’ bearish near-term outlook but it ranked below weak demand, uncertainty on gas projects, delays in settling of Government arrears and a continued shortage of foreign currency.

ANZ hopes that the information will help firms and policy-makers in their planning.
“We believe the information collected will provide the timeliest read on economic conditions, both current and future and will be a welcome addition to the national economic conversation,” it said in a statement.
“Similar surveys exist in other markets where ANZ operates and have proven to be a good indicator of turning points in economic activity.
“In business, information on the current and future state of the economy is an important factor in making key commercial decisions.
“However, timely information on Papua New Guinea’s economy is hard to get. Gross domestic product (GDP) data is only published once a year and is released with a significant delay.”
ANZ Research has started a quarterly business outlook survey for PNG.
The survey asks participants to provide an opinion on current business conditions and expectations of future business conditions.