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QLD small businesses feel mining downturn

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The mining slump is having a domino effect across different sectors in the country, with Central Queensland small businesses the latest target.

A Chamber of Commerce and Industry Queensland survey for the June quarter showed Queensland’s business conditions was 5-10 index points lower than the state average.

This includes areas like sales, profitability and revenue, The Morning Bulletin reported.

The survey, which came out yesterday, said business confidence for the June quarter stood at 43 per cent, which is eight per cent lower than North Queensland.

This is predicted to jump during the present quarter to 50.9 per cent, putting business confidence in neutral.

The survey also said capital expenditure and employment also dropped during June.

“Small businesses provide vital goods and services to the state’s larger projects, particularly in the resources sector, and when the sector slows these businesses are impacted,” CCIQ regional manager Victoria Bradshaw said.

She added the federal election was adding doubt to business confidence, which has been slumping across Queensland.

Businesses and employees hold back from discretionary spending after an election date has been set, as they wait for policy execution of the elected government.

Hundreds of people protested on Brisbane streets recently to protest against job cuts in Queensland's mining sector.

The protest came after mining giant Glencore Xstrata announced 450 workers will be sacked from mines in the Bowen Basin, according to CFMEU Queensland district president Stephen Smyth.

Queensland coalfields saw 1000 jobs go in a matter of a week, with companies like Downer, Peabody and Hastings Deering all cutting jobs.

The June quarter survey also showed 36.6 per cent of businesses are confident in business conditions.

Queensland’s Central Coast’s business confidence stood at 35.4 per cent.

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