Business indicators back on track

1 March 2010

Business Indicator figures for the December quarter released today by the Australian Bureau of Statistics (ABS) confirm signs of economic recovery, according to the State’s leading business membership organisation, Business SA.

The data shows gross profits in Australia increased 2.2 per cent (seasonally adjusted), while wages and salaries increased by 0.6 per cent.

The majority of sectors saw an increase in sales of goods and services, with the exceptions including Real estate services and Financial and insurance services.

South Australia experienced a 3.1 per cent increase in sales of goods and services and a wage decrease of 0.2 per cent in the December quarter.

Business SA Chief Executive Officer, Peter Vaughan, said the figures indicated that the economy was beginning to get back on track.

“These business indicator figures have been taking a hit over the last 18 months, so it is pleasing that signs of recovery are being confirmed in this data,” said Mr Vaughan.

“The rise in the sales of South Australia’s good and services in the December quarter is positive news for local businesses and will increase confidence levels.

“More industry sectors are registering an increase in sales and this has seen a boost in inventory and gross operating profit levels in the past two quarters.

“Locally, South Australia bucked the national trend with a decrease in wages and salaries, confirming that many small businesses across the State remain under pressure.

“While the figures point to confidence building throughout the economy, it is essential that momentum is maintained and interest rates are left on hold when the Reserve Bank meets tomorrow.”

Ends.