Poor but positive business conditions 11:02am 5.05.08

Results from a March survey by the National Australia Bank (NAB) reveal that just 32 percent of SMEs reported good or very good conditions. Larger SMEs with an annual turnover of between $5–10 million recorded the steepest decline, even though in the previous quarter they had recorded the strongest conditions.

However, small businesses seemed to be coping better than their big business counterparts, says Geoff Greer, regional general manager of Business Banking Australia at NAB.

The survey also showed businesses had a fairly positive outlook for the next year despite the March quarter decline. “For SMEs in Australia, the current labour market pressures, interest rates and wage increases continue to be the main constraints on the profit outlook,” says Greer. “However, despite these pressures the profit outlook for SMEs remains positive for the next 12 months.”