Sydney: Westpac Small Business Index has increased 3.8 per cent (4.6 points) over the past 12 months, with over half (56.9 per cent) of small business owners agreeing that their business’ financial situation is better than it was this time last year.
The Index measures the confidence, current performance and future plans of the Australian small business sector. Westpac’s General Manager of Small Business, Julie Rynski commented that although there have been unfavourable fluctuations in sentiment over the past 12 months, small businesses are starting the year more confident about their financial situation and future business activity than they were this time last year.
Ms, Rynski said, “Despite unexpected declines experienced in Hospitality and Recreational Services and Wholesale and Retail trade over the historically busy Christmas period, the Small Business Index has remained in positive territory over the past twelve months. This result is attributed to a number of factors including; the lower Australian dollar which is encouraging domestic spending; falling petrol prices; and expectations of an interest rate cut, which eventuated earlier this month.”
She added, “Small businesses are an essential part of the Australian economy and Westpac will continue to extend a helping hand to the small business sector to ensure the continued prosperity of our nation.” The results by state reveal slight improvements in the performance of small businesses in Queensland (increase of 6.4 points) and Victoria (increase of 1.3 points) in contrast to a slight drop in New South Wales (down 1.2 points) and a significant decrease in Western Australia (down 16.8 points), which has been significantly affected by falling commodity prices this quarter.
