Profitability Boost Fails to Ignite WA Business
March 06, 2012
Better trading conditions have done little to boost confidence amongst Western Australian small and medium businesses, according to the latest Sensis® Business Index.
Report author Ms Christena Singh said despite profitability and sales improving in Western Australian during the quarter, business confidence had fallen.
“Western Australian small businesses have achieved the nation’s strongest sales performance this quarter, and the first positive reading in over 12 months. Small businesses are also expecting the strongest profitability and sales for the coming quarter, although employment is expected to weaken,” Ms Singh said.
Despite these improved conditions, business confidence declined during the quarter as a result of ongoing concerns about weak consumer spending. Overall, three in 10 Western Australian small businesses are worried about their business prospects for the year ahead, while five in 10 are confident and the remainder neutral.
The Sensis® Business Index shows Western Australian small businesses are the most likely to be considering closing or selling their business during the next 12 months. Two in 10 Western Australian small businesses said they were expecting to close or sell their business over the next 12 months, the highest level in the nation.
Support for the policies of the Western Australian Government continued to improve during the quarter, making the government the nation’s most popular.
The key reasons Western Australian small businesses said they support the state government’s policies were perceptions about:
- Trying to help small business
- Liberal Party traditionally supports small business
- Small business management training schemes.
The key reasons Western Australian small businesses said they disapproved of the state government’s policies were perceptions about:
- Only concerned with big business
- Introduction of seven day trading
- Cost of utilities
- Internal problems in Government.
Key Western Australian Indicators for March 2012 Sensis® Business Index:
|
Indicator
|
March 2012
|
December 2011
|
|
Business Confidence
|
+28%
|
+31%
|
|
Sales
|
+7%
|
-6%
|
|
Employment
|
+2%
|
+2%
|
|
Wages and Salaries
|
+3%
|
+0%
|
|
Prices
|
+9%
|
+2%
|
|
Profitability
|
-6%
|
-9%
|
|
Capital expenditure
|
-9%
|
-21%
|
|
Approval of WA Government
|
+8%
|
-3%
|
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