The confidence felt by company directors for the Federal Coalition Government has slumped to its lowest level since the election in September 2013.
Almost half of all directors rate the government’s performance in its first year in office as poor or very poor, according to the latest Director Sentiment Index.
The survey shows overall director sentiment has slipped 7.1 points since the last survey, falling back to the same level recorded in early 2013 when the former Labor Government was in power.
The Australian Institute of Company Directors’ index is the only indicator measuring the opinions and future intentions of directors.
It is based on a survey of 501 directors of private business, not-for-profit organisations and ASX-listed companies.
The survey, which was conducted from September 29 to October 12, found that more directors than not now believe that the Coalition Government does not understand business.
Almost half of all directors believe the government’s performance has a negative impact on their business decision making and around 75% believe it has a negative impact on consumer confidence.
This continues a downward trend in sentiment that has been apparent since the Coalition took power last September.
John Colvin, Company Directors’ CEO, says the index results highlights the challenges faced by the government as it attempts to implement its policies.
“An overwhelming majority of directors believe the make-up of the Senate has an adverse impact on both business confidence and consumer confidence,” he says.
Directors are more pessimistic about the future health of the Australian economy than previously, with 55% expecting it to be weak over the next 12 months.
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