It is good to finally see some positive signs in the WA economy with ABS figures indicating that the states domestic economy grew by .2% during the June quarter. Whilst this may appear to be very small it is significant in that we have been in negative territory for the past four years.
When we combine this with nominal GDP growth of 4.7% nationally the indicators are very good for business.
In addition to GDP growth public companies included in the ASX 200 index have generally reported increased profits (78% of those listed). This is also an important indicator as it flows into increased dividend distribution to shareholders and increased investment by these companies.
Similarly business conditions and confidence are at a 20 year high.
While these figures are all sound the majority of people pay little attention to them as they often don’t see them as having a direct impact on either their business or personally.
The reason we should take note of these figures is that they are important in terms of future planning. In a sense many of us have had to bunker down over recent years whilst the economy has been in negative territory, however with the economy now picking both at the State and National level we need to adopt strategies to exploit it.
Any business looking at their growth prospects in the coming years should take account of these figures and develop their marketing plans, which may encompass such things as new products and plan for greater growth and profitability than they would do in a recessionary economy.