Business confidence in regional Western Australia has surged to its highest level in three years, with optimism now matching the Perth metro area for the first time since 2022.
CCIWA’s Regional Pulse report for the September quarter showed two in five (41%) regional businesses expected economic conditions to improve in the next three months – up five percentage points from the previous quarter.
One in three (32%) businesses anticipated stronger conditions over the year ahead.
CCIWA Chief Economist Aaron Morey said the rebound was driven by strong export performance across key regional industries.
“We’ve seen surging commodity prices and good harvest conditions over the course of 2025, and that’s likely what’s driving business confidence across the regions,” he said.
“WA’s economy is in good shape and that’s flowing through to businesses.”
Confidence is strongest in the Pilbara, Peel and South West regions, where expectations for production and employment growth have improved sharply.
In the Pilbara, 61% of businesses expect stronger short-term conditions, while the Peel region recorded a 40-point surge to 57%.
Barriers to regional business growth
Despite the uplift, the report found rising operating costs remained the biggest barrier to growth, cited by almost two-thirds (64%) of regional businesses.
Cost pressures were most acute in the Wheatbelt (77%) and Mid-West and Gascoyne (71%).
“It’s clear businesses are still struggling to cover cost increases, and many are under significant pressure,” Morey said.
“That’s why it’s so vital for the WA Government to look at fixing WA’s unfair payroll tax system, which slugs WA businesses more than any other state.”
Worker shortages also continued to weigh on regional employers, with nearly seven in 10 (67%) reporting difficulties finding staff, particularly in the Goldfields-Esperance (77%), Pilbara (74%) and Peel (74%) regions.
CCIWA’s Economic reports, including Regional Pulse, are available exclusively to CCIWA Complete, Advantage and Corporate Members. For more see CCIWA’s Economic Insight page.
