Small Business Is Suffering in Australia – Property, Retail, Employment – They’re All Down

Small Business Is Suffering in Australia – Property, Retail, Employment – They’re All Down

The most recent NAB Quarterly Small and Medium
Enterprises Survey released 25 July 2019, shows that business conditions are getting
worse in Australia for smaller firms, especially tradies. Although business confidence is up (it rose
by 3 index points), actual business conditions have dropped to -4, continuing the downward
trend over the past year. At these levels, conditions are both below
average and negative, suggesting that conditions for small firms are now going backwards. In this chart, we can see the current state
of the three different sub-components of business conditions. Trading is down; Profitability is down; and
Employment is down. Employment and Profitability have both fallen
to -6. This chart shows us that business conditions
have fallen for all firm sizes. Larger businesses have fallen to 2; Medium
to -7; with Small businesses being hardest hit falling to an index score of -8. Although confidence is up in every state of
Australia, business conditions have fallen everywhere with Victoria having the most favourable
conditions. WA is the worst hit, followed by NSW. Although Victoria has the most positive conditions,
taking a look at this chart, it’s nothing to write home about. Victorian business conditions have fallen
dramatically over the last year from a peak of about 26 in 2018 to 3 now. Looking at business conditions by industry,
we can see that Property and Retail are the hardest hit sectors, both falling into severe
negative territory. Wholesale comes next, followed by Accommodation,
Cafes, and Restaurants. Regarding property, this chart says it all. Property is down, down, down. NAB Group Chief Economist Alan Oster described
the results as “sobering”. He said, “The things that worry us are, one, business
conditions have come down a lot, and two, it is particularly the small end of town that
has come down a lot — and that makes us nervous. It’s the tradies, and they tend to lead the
economy — and that’s not a good sign.” Sydney electrician Ray Sherriff, spoke to
the ABC about business conditions in the building sector earlier this year. He said, “Two years ago we literally didn’t have
time to price all the residential jobs that were coming in. Now it’s rare and there are lots of jobs getting
postponed and put back. Maybe three to four years ago we were looking
at probably 50 to 60% of our business. Now we’re probably looking at 20 to 30%.” And most recently he said, “Multi-unit domestic has really dried up. The builders that are doing reasonable stuff
has not dried up, but the run-of-the-mill has crashed.” The thing that I find most interesting, is
that business confidence is up. Have people lost their minds? NAB’s Alan Oster commented, “We don’t think this higher confidence will
persist with conditions so low and forward indicators pulling back further. Sales and trading continue to be the largest
constraints on firm output — that is, demand for their products is weak — and this is
reflected in pressure on margins, with costs growth continuing to outpace the growth of
final product prices. The employment index fell sharply and is quite
negative. This suggests that sluggish demand that has
been evident for some time is now feeding through to hiring decisions.” Small business in Australia is clearly struggling
— especially in the property and retail sectors. Trading is down. Profitability is down. Employment is down. Bloody everything is down.

26 thoughts on “Small Business Is Suffering in Australia – Property, Retail, Employment – They’re All Down

  1. Businesses are buying everything from china cuz its a shit load cheaper.. half the ingredients in packaged food is from china bit labelled made in Australia cuz its packaged here

  2. I can't feel sorry for our overpriced tradies. They have been charging near to twice their worth for decades. If they can't afford the repayments on their McMansions and expensive 4x4s then too bad. Australian tradies and retailers have had a great run now it is time to pay the piper.

  3. People will think "the government should do something" when what we need is smaller government and lower taxes. But in Australia we always look to the government to do something.

  4. I wouldn't be surprised that Australia could be where the flashpoint for the next global recession and not very many people that the recession of 2008 had its start with the failure of a French bank a year earlier give or take some months. It is always the small things that lead things on causing domino effects throughout larger more complex and highly interconnected systems ultimately resulting in perfect storms for which we are going to experience at some point by or before 2021. Worst case you get a systemic crash through the markets and the banks from one country to the next until it hits the states then it all shits the bed with up to a 30% market crash then months of economic hell for which the big currencies like the Dollar and the Euro lose the majority of their value before demonetization then replaced by the SDR. Low probability very high impact.

  5. ScoMo, do you watch all these reports or still sing the same song "Jobs & Growth". Start listening and stop smiling because most Australians are worried.

  6. I also don't have too much sympathy for tradies. For far too long they have immensely overcharged for their services because demand was high. Now, demand has sharply turned downwards. 5 years ago, my brother on the Sunshine Coast wanted to add on to his existing deck. We're talking about an extra 8×14 feet. He was getting quotes no lower than $8000!

  7. HERE IS THE MAIN PROBLEM……**.AUSTRALIANS ARE BASICALLY STUPID** They do not realise or even care that they are controlled by a Corporation that is registered in the USA and is named ""The Australian Government ..This corporate Government governs with its corporate greed for its associates……NOT the Australian people..EVERYTHING has been sold off to their multinational associates…and the Australian are paying for it in spades…..Oh and they don't even know that this Government is totally corrupt and illegal..And now when the corrupt banks fail they will lose all their savings and super to the banks with** BAILIN**

  8. Not only Do I follow the Stock Market every day.My industry Retail and Paint Supply for New and Existing Housing is 50% down. And Im in a Growth Area – The Central Coast.

  9. Value of the currency is down and will continue to go down representing in purchasing power of consumer goods as long as the RBA and Government continue debt based currency / credit expansion . More pubic sector employees further currency explanation on fewer produced goods = inflation and a stagnant economey .

  10. A little hint for our Aussie friends, this what happens when liberals run things. I have always look at Australia as having that same freedom loving mindset as we do in the states.

  11. No one wants to work for small business because they rip you off and casualise you giving you less money and rights for more work hours because the liberals gave them the power too and now its hurting the economy, its sad but got no empathy for the greed in small business, the word always gets around eventually and prevents growth

  12. Mate tradies build quality is for all to see. I reckon f%#k'em let them rot. They certainly don't care when certain residents pay over a million dollars and have a inhabitable property. They can live in their Utes,

  13. The politicians are doing their job in accordance with the UN agenda 21/30 so why complain? We keep voting these smooth talking clowns into power. Wake up and vote for someone that at least speaks some truth. Would that be worse than the current duopoly of arguing lawyers with the same orders that have ruled over us for years

  14. i visited australia some years ago for permanent status and found it to be terribly expensive…a rip off…here in the US things are a lot cheaper except for a few cities with expensive housing….i found that the labor costs were extravagant..everyone was charging an arm and a leg for simple home repairs…i decided to go back to the US…overall, i did not find aussies to be hard working, talk a lot, take a lot of time off, party a lot and leave everything for tomorrow…the worst thing about australia were the scams..rampant…everyone trying to scam everyone….your laws need to be stricter…and u need to get rid of the riff raffs from the middle east, india, china and pakistan who abuse your welfare system

  15. People would have to be insane to start a business in Australia doing anything real (as opposed to the BS economy). The red tape (designed both to serve major corporations and to create BS middle class welfare jobs) , entitled attitudes and poor work ethic of the average Australian, etc. conspire against anyone with a plan.

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