Subdued consumer confidence has seen a landslide in business confidence according to Mid North Coast NSW Business Chamber Regional Manager Kellon Beard.
His comments come after the release of the latest NSW Business Chamber and Commonwealth Bank Business Conditions Survey.
“Businesses we’ve surveyed have always maintained an optimistic outlook for the next quarter but that has clearly taken a turn for the worse in this latest survey and that should be of great concern,” Mr Beard said.
“NSW’s economy is particularly feeling the effects of subdued consumer confidence, an uncertain global economic outlook and a high Australian dollar. The nature of NSW’s diversified economy such as retail, manufacturing, financial services, tourism and construction, means that these challenges are all impacting on the overhaul strength of the State’s economy.
“This is a tough time to be in business and no one should underestimate the need for businesses to buckle down and look at opportunities to innovate and reduce costs until the economy picks up.
“The results of our survey once again bring in to question the logic behind the Federal Government’s push for a carbon tax this year. While Australia may be one of the few strong economies after the GFC, it would seem foolhardy to throw that advantage away on a policy that will have no impact on global carbon emissions.
“The feedback from business is that the introduction of the carbon tax will see a stampede of businesses exporting Australia’s carbon emissions and jobs offshore – a result no one, including the Government, would want to see.”
The NSW Business Chamber and Commonwealth Bank NSW Business Conditions Survey found:
- 30 per cent of businesses report that the current performance of the NSW economy was weaker than the previous quarter. This compares with 24 per cent who said it was stronger. This is expected to remain similar for the coming quarter with 30 per cent of businesses expecting the economy to weaken further while 26 per cent said it would strengthen;
- 30 per cent of businesses report that business conditions have declined in the current quarter compared to 22 per cent who reported an improvement in conditions. Expectations for the next quarter are negative with 30 per cent expecting further decline compared to 22 per cent expecting an improvement.
- 33 per cent of businesses report increased sales this quarter and 37 per cent report a decrease in sales. 32 per cent of businesses expect sales revenue to increase in the coming quarter and 36 per cent expect sales revenue to decrease in the coming quarter;
- 40 per cent of businesses report deterioration in profitability (compared to 26 per cent who report an improvement). 37 per cent expect a deterioration in profitability in the coming quarter (compared to 29 per cent who expect an improvement); and
- 26 per cent of businesses report a tightening of access to finance and 18 per cent expect a further tightening in the coming quarter.
