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NT businesses down on festive spirit

December 06, 2011

Not all Northern Territory small businesses are in the festive mood this year and some have put a stop to the end of year Christmas bash, according to the Sensis® Business Index released today.

Report author Ms Christena Singh said business confidence in the Northern Territory declined further during the quarter on concerns about Federal Government policies and falling demand.

“Some of the decline this quarter can be attributed to the wet season. However, this is the third consecutive quarter we have seen a fall in business confidence in the Northern Territory, with business confidence now sitting below the national average. The Northern Territory is also the only state or territory to record a decline in business confidence this quarter.

“While the summer trading period is expected to provide an improvement in profitability and sales, Christmas trading is likely to be down on last year,” she explained.

Overall, 30 per cent of Northern Territory businesses are expecting trading conditions to be busier this Christmas, while 34 per cent are expecting conditions to be quieter and the remainder are expecting it to be line ball with last year.

For those expecting an upswing in Christmas trading, an average increase of 19 per cent is expected. Businesses anticipating a downturn in trading are expecting conditions to be 25 per cent slower than last year.

The Sensis® Business Index indicates 54 per cent of Northern Territory small businesses are planning to hold a Christmas party for staff, clients or suppliers this year, down from 60 per cent in the Northern Territory last year.

“However, some Northern Territory small businesses are still taking a proactive approach to managing the Christmas period this year, particularly in relation to increasing advertising activities.

“For some businesses, for example in the accommodation, café and restaurant sector, it is about gearing the business up for a traditionally busy period of the year. For other businesses, for example in the finance and insurance sector, it is about managing the business through one of the quietest periods of the year,” she explained.

Overall, 22 per cent of Northern Territory small businesses are planning activities to manage the Christmas period, down six percentage points on last year.

Increasing advertising is the most popular activity planned (39 per cent), followed by increasing staff (18 per cent) and changing marketing direction (14 per cent).

Despite the decline in business confidence, small business support for the Northern Territory Government is unchanged since last quarter, and the government remains the nation’s most popular, according to businesses.

Key NT Indicators for December 2011 Sensis® Business Index: