Westpac business customers forecast bright future

Westpac’s business customers are the most optimistic about the Australian economy of the Big Four, the latest Roy Morgan Research Business Survey reveals. 

In the three months to May 2014, Westpac customers scored a 128.3 business confidence rating, with 118.6 being the average across the four major banks, the survey revealed, due to their “positive feeling regarding economic conditions in Australia over the next 12 months and five years”. 

ANZ customers were also confident about the year ahead, recording a rating of 121.4, based largely on their belief that the next 12 months would be a good time to invest in their businesses. 

However, business customers of the other two major banks were more pessimistic about the future, with Commonwealth Bank scoring a business confidence rating of 113.6, while NAB received a 108.8 rating, with both sets of customers saying they were less likely to invest in growing their businesses than those who banked with Westpac and ANZ. 

Roy Morgan Industry Communications Director, Norman Morris, said the results were more relevant to the banks because it was at a measurement of the individual customer level than a measure for the overall economy. 

“Ultimately, how each bank’s customers feel about the economy and the associated outlook for their business will be the best indicator of the banks’ likely lending prospects,” he said. 

“The analysis¨ shows that the business customers of the CBA and NAB have a less positive outlook on the economy and their business, and as a result appear to be less likely to invest or borrow for business growth in the next 12 months.  

“On the other hand Westpac and ANZ customers have a much more positive outlook and as such are more likely to invest in growing their business over the next year.”