Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Conditions and confidence rise among SMEs

A prominent business survey has reported an increase in both business conditions and confidence in the SME market, rising by two points overall in the June quarter.

According to NAB’s Quarterly SME Survey, business conditions rose to +4 index points, while business confidence increased to +5 index points in the quarter.

“Analysis by the size of SME businesses suggests that firms have generally experienced better conditions and confidence in the quarter, with the exception of conditions for mid-tier firms,” the NAB survey said.

Advertisement
Advertisement

“Despite a recent improvement, low-tier firms with an annual turnover of $2-3 million continued to under-perform consistently across major indicators relative to their larger counterparts. In particular, these firms fared poorly in their cash-flow conditions, with their cash-flow index falling by 11 points to -17 index points.”

Conditions across the states were mixed in the quarter, with New South Wales continuing to claim the top spot followed by South Australia and Victoria. Meanwhile, Western Australia and Queensland fared the worst in the quarter, according to the report.

“Conditions by industry continued to paint a mixed picture, with service-oriented industries maintaining momentum ahead of non-service industries in general,” it said.

“Property, business services and finance firms continued to do well, although conditions of property firms have moderated compared to last year. Conditions in manufacturing were largely unchanged around the neutral mark.

“Meanwhile, retail and construction … overtook wholesale and transport as the worst-performing industries in the quarter, with conditions in the latter two improving significantly, albeit still marginally negative.”

In terms of business confidence, the majority of industries showed improvement in the quarter except for manufacturing and accommodations, cafes and restaurants.

“Property and construction firms were the most confident in the quarter, while finance experienced the weakest [reading]. Confidence by health SME firms rebounded sharply from -21 to around the neutral mark this quarter, but this could prove to be a blip in the data due to a small sample size,” the survey said.

Conditions and confidence rise among SMEs
mortgagebusiness

Latest News

A major insurance provider has announced that it would restrict its offering of lender’s mortgage insurance in light of emerging risks ass...

Lenders will be allowed to extend their pre-approval period for borrowers using the First Home Loan Deposit Scheme given the coronavirus pan...

The federal government has announced several changes to the Takeovers Panel, which include the reappointment of an ANZ executive and the ap...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you expect COVID-19 to reduce or increase your business flows?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.