SMEs hit again
Small to medium-sized businesses (SMEs) have experienced another decline in the September quarter, the first time they have dropped into negative territory since September 2001 and the third decline this year, according to a National Australia Bank (NAB) SME survey.
Twenty-four per cent of businesses surveyed reported poor or very poor conditions, up from 19 per cent in the previous quarter.
The smallest businesses, with a turnover of $2 to $3 million, are still the worst affected, at negative 2 index points.
All SMEs reported poor profit growth in the past quarter. The NAB SME profit index has dropped to negative 2 index points.
Geoff Greer, the regional general manager of Business Banking Australia, said that a drop in consumer spending and confidence was contributing to the decline.
However, despite declining business conditions and global uncertainty, the profit outlook for SMEs remains positive for the coming year, he said.
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