5 February 2019: The December Quarter 2018 Sensis Business Index, released today, has revealed that in the run up to the State election, confidence among small and medium businesses (SMBs) in New South Wales (NSW) has fallen for the third quarter in succession, down seven points to +42.
The report, which measures SMB activity, expectations and confidence over a three-month period, found that due to a challenging September quarter, NSW SMBs are sitting eight points behind the national average, with falling sales being the biggest concern of those worried about their prospects.
The report also revealed that small and medium businesses in regional NSW were far less confident than those in Sydney, recording balances of +28 and +51 respectively – both falling from the previous quarter.
When looking at the key performance indicators for last quarter, sales (-2), employment (-1) and profitability (-7) all fell into negative balances, while also becoming less positive in wages (+10) and prices (+9).
Sensis Chief Executive Officer, John Allan, said: “Despite falls witnessed across the state to below the national average, three in five NSW SMBs still admit to feeling confident.”
“The report revealed that of those who feel confident, resiliance remains the most positive driver, indicating that while the previous quarter was not as strong as anticipated, NSW SMBs remain self-assured within their industry,” Mr Allan said.
Expectations for 2019 were positive in all areas except capital expenditure, with a particularly strong increase witnessed in sales (up 11 points to +17) to suggest a more positive year ahead for businesses in NSW.
Support for the NSW Government increased seven points to reach a positive balance of +2, with favourable assessments influenced by infrastructure development and believing the Government is helpful and interested in small business.
Of those with a negative opinion of the State Government, the leading criticisms were lack of policies, direction, support and incentives for small business, excessive bureaucracy and too much focus on big business.
“SMBs in NSW, particularly in Sydney, witnessed an interesting year in politics with the likes of the change in Prime Minister from Malcom Turnbull to Scott Morrison, shifting long-set state norms in Wentworth, and this was reflected in support for the Federal Government falling 5 points to -1.”
