Businesses ‘shedding staff’ amid ‘lacklustre’ revenues
NUMBER crunching on business confidence across the state has returned dire results.
The NSW Business Chamber's December Business Conditions Survey confirms business confidence has taken a hit due to the combined impact of bushfires, drought and weak household demand.
NSW Business Chamber regional manager, Jane Laverty, said business confidence was down right across the state.
"Our survey underscores the impact of broader economic challenges such as drought and weak consumer spending which were hurting businesses even before the bushfires," she said.
"This triple-threat of the bushfire disaster, drought and weak household demand is hurting business.
"The declines were seen across the board, with respondents' perceptions of the performance of the economy down, and indicators such as staffing and capital spending also falling sharply.
"The results are particularly disappointing because the latter part of the year normally offers a welcome boost to business trade.
"Lacklustre revenues are reflective of weak household spending, with recent data indicating a large proportion of the most recent personal income tax cuts are not being spent.
"While the labour market remains robust, we're concerned about the number of businesses reporting that they were shedding staff.
"We need to get behind our local businesses because our communities depend on them for employment and economic opportunity.
"Our bushfire and drought affected communities are resilient and we need to be optimistic and back ourselves.
"The best way we can support affected communities is by buying local which supports businesses and their employees.
"The Chamber has welcomed the support offered to businesses affected by the bushfires and the drought, and we look forward to further initiatives to help economic recovery and business confidence in affected regions," Mrs Laverty said.