Business confidence rises among SMEs

Business confidence is at its highest level in almost five years nationally, with SME owners’ sentiments varying considerably across the States and Territories

Business confidence has jumped to its highest level in almost five years on a national level, according to the latest Sensis Business Index (SBI) survey. More than three times as many businesses are now confident, 57%, as those who are worried, 18%, representing a 12-point rise in confidence among SMEs on a net basis – +27 to +39.

The Index, which reflects the views of 1000 small and medium businesses from across Australia, reveals different sentiment among small-business owners across the States and Territories.

ACT

ACT SME support for the Federal Government moved into positive territory, up 18 points from-15 to +3.
16% of THE Territory’s businesses think the economy is growing versus 22% who believe it is slowing – this compares to the national average of -17.

SMEs in the west remain concerned that the WA Government is too focused on big business, the mining industry and multi-nationals, but are encouraged by the focus on reducing red tape.
WA SMEs are the least supportive of the Federal Government, with a one-point rise in support to -5.

Victoria

Business confidence in the Victorian Government has reached its lowest level since being elected in November 2014, the one-point fall to -17 making it the second most unpopular Government in the country among SMEs.
Vic SME support for the Federal Government was up one point, +3 to +4, with the national average +7.
Nine % of Victorian SMEs think the economy is growing versus 36 % who think it is slowing.

Queensland

Business confidence in the Sunshine State has risen by 10 points on a net basis, +25 to +35, and is now almost three times higher than one year ago when the score was +13.
Qld SME support for the Federal Government was up six points, -3 to +3.
17 % of Queensland SMEs think the economy is growing versus 27 % who think it is slowing, for a net balance of -10.

Tasmania

Business confidence has more than tripled in the Apple Isle, rising 46 points on a net basis, +18 to +64, – the highest in Australia and 25 points ahead of the national average.
Businesses see the State Government as supportive and interested in small business and believe it is working to reduce bureaucracy.
Tasmanian SMEs the most confident for the year ahead about sales, +56, and profitability, +42. It is one of only two locations with a positive outlook for capital expenditure, which is at +2.

South Australia

Business confidence in the south remains the lowest in the nation, despite a 15 point rise this quarter to +16 on a net basis.
South Australian SMEs are equally-most supportive of the Federal Government, following a 30 point rise in support to +18 on a net basis.

NSW

18 % of NSW SMEs think the economy is growing versus 27 % who think it is slowing.
NSW SME support for the Federal Government was up 7 points, +6 to +13.
Last quarter, SMEs in NSW experienced flat sales and negative profitability, -5, with no employment growth.

NT SME support for the Federal Government was up five points, +9 to +14.
13 % of NT SMEs think the economy is growing versus 40 % who think it is slowing.

AAP