Finance sector remains resilient during lockdown

8 April 2020

Over 95% of businesses in the financial and insurance sectors remain operational during COVID-19, one of the highest rates in industry sectors, although more than half have noted a downturn in demand.

According to data from the Australian Bureau of Statistics (ABS) on the status of firms during COVID-19 pandemic, financial and insurance services was one of four sectors to report these high levels.

However, nearly 60% of businesses in the financial and insurance sector had reported a downturn in the demand for their services although only 30% said they had been affected by the Government restrictions.

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The other three sectors were professional, scientific and technical workers, transport, postal and warehousing and administrative and support services as having the most staff at work.

At the other end of the spectrum, less than half of businesses in the arts and recreation sector were currently operating.

Overall, two-thirds of Australian businesses had reported their cashflow or turnover had reduced as a result of COVID-19 while 10% had closed their business entirely.

Firms were adapting to the new circumstances by changes such as renegotiated rent or leases, brought forward investment plans or deferred loan payments.

To collect the data, the ABS surveyed 3,000 businesses between 30 March and 3 April.

 




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