analytics

Post Federal Election State of the Business Sales Market Impact

 

Finally we have the federal election out of the way and already there is talk amongst experts in media circles that business and consumer confidence should continue to increase.  A lot of talk in this area is generally in the housing and retail market.  Whilst these markets and the business sales market are chalk and cheese, it’s the perception in the public that the economic forecast is positive that gives potential business buyers (particularly in the businesses under $1mil in price) the encouragement they need to get into business for themselves. 

The graph below draws an excellent picture of the last fortnight, showing another dip in enquiries in the week leading up to the election and then a sharp return to levels prior in September.  I forsee that this line will continue to trend upwards and confidence will grow post-election.

 

 

I receive regular economic reports from Citibank which are quite informative, and I thought I’d share the graph below which shows Business and Consumer Confidence.  I believe this report paints a very good picture of what we have experienced in the business sales market place over the past few years since the GFC.  For most part of the past few years, consumer and business confidence levels have remained neutral to below neutral.  In 2013, confidence has been increasing however the federal election has placed a ceiling on confidence levels.  I would like to think, now that ‘the cap is off’, we’ll see a steady increase in confidence which should result in an increase in enquiries and business sales.