More firms in Fiji are expected to focus on capital expenditure now, as the National Budget passed through Parliament late last month.
The latest edition of ANZ Research report – Pacific Private Sector Survey – which included about 350 ANZ customers across a range of industry sectors – noted that the private sector may have been eager to see what was in the government’s first budget before firming up capital expenditure plans.
The research showed that 10 per cent of Fijian firms surveyed reported higher demand in quarter of this year – the same as the previous quarter.
While profitability stepped down with 32 per cent of businesses reporting increased profitability in the second quarter compared with 35 per cent in the first quarter of the year, the report highlighted that firms continued to put on staff as a result of poaching from competitor industries, long-term migration and leakage to short-term employment opportunities offshore.
While expectations of future sales and profitability changed little in the second quarter, with 39 per cent of businesses reporting increased turnover and only 13 per cent expecting improved profitability over the year ahead, future investment intention stepped down in the second quarter.
Responses from participants showed that the number of firms planning buildings and structures expenditure fell to 19 per cent and undertaking plant and equipment investment fell to 13 per cent.
ANZ Research conducts a quarterly survey of private businesses in Fiji asking participants to provide an opinion on current business conditions (demand, profitability), expectations of future trading conditions, capex investment intentions, new hires and key constraints faced by the private sector.
The next survey will be conducted in October.
