The latest Business Conditions Survey conducted by the state’s peak business organisation, the NSW Business Chamber, supports the need for additional stimulus to bolster economic activity, particularly in drought affected areas of NSW.
 

The survey highlights that many businesses across the state have been doing it tough, however there are preliminary signs that businesses think tax cuts and interest rate reductions will provide a welcome boost.
 
The survey was conducted following the recent State and Federal Elections.
 
“The impact of the drought cannot be overstated and is continuing to hurt businesses right across the state,” said NSW Business Chamber Chief Executive Stephen Cartwright.
 
“Businesses from the Far West and Orana, New England Northwest, Capital Region, Southern Highlands and Shoalhaven Region continue to report particularly difficult business conditions,” Mr Cartwright said.
 
“Each quarter we ask respondents their perceptions on how the economy is performing – and how they think the next quarter will play out.
 
“Our survey reveals that businesses, on account of declining activity, have had to shed staff in most regions, and this would be concerning if it were to foreshadow a more significant deterioration in labour market conditions.
 
“The fact that business confidence has deteriorated strengthens the case for governments, particularly the NSW Government, to get on with the delivery of infrastructure, particularly infrastructure promised to regional NSW. 
 
“The recent passing of the tax package will provide some good news as consumers will have more money in their pocket to spend on discretionary items.
 
“Businesses responded to the prospect of economic stimulus by recording a significant bounce in their perceptions of the performance of the economy going forward.
 
“While conditions remain weak overall, there are also signs that recent declines in staffing, capital investment, and sales revenue are bottoming out.
 
“The survey points to a tougher trading environment, but business owners are optimistic by nature and expect a turnaround over the next few months,” Mr Cartwright said.
 

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Damian Kelly Senior Manager, Public Affairs T: 02 9458 7544M: 0401 773 825