Australia’s Small and Medium Enterprise (SME) business conditions edged lower in Q3 2018 to +11, while SME business confidence fell to +2pts, notes the research team at NAB.
Key Quotes
“While conditions have eased over the past two quarters, they remain well above average, though confidence has declined to below average levels.”
“According to Alan Oster, NAB Group Chief Economist: “Conditions have eased through the middle of 2018, but SME business conditions are still at very reasonable levels. SME business confidence is a bit weaker and is now below average”.”
“Like conditions, confidence for SMEs remains weakest in the retail sector, though wholesale and finance also report worsening confidence at present. Confidence was highest in the manufacturing and construction industries.”
“While conditions remain favourable overall, the smaller SMEs were significantly weaker this quarter, with sharp declines across most survey categories.”
“A concerning finding from the Survey was a significant deterioration in conditions, confidence, forward orders and cash flow at the smaller end of the SME sector. This needs to be watched and better understood” said Mr Oster.
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