Business indicators confirm pressure - 29 Nov

Business Indicator figures for the September quarter released today by the Australian Bureau of Statistics (ABS) signal concern for business, according to the State’s leading business membership organisation, Business SA.

The data shows gross profits in Australia decreased 1.5 per cent (seasonally adjusted), while wages and salaries increased by 2.1 per cent.

Industry sectors with the largest increases in sales of goods and services included administrative and accommodation services, while financial and arts were amongst those with the largest decreases.

South Australia experienced a 1.3 per cent decrease in sales of goods and services and a wage increase of 2.1 per cent in the September quarter.

Business SA Chief Executive Officer, Peter Vaughan, said it was evident that many areas of the economy remain under pressure.

“These business indicator figures indicate that many areas of the economy are struggling,” said Mr Vaughan.

“Inventories and gross operating profits are falling, and twelve of the fifteen industry sectors recorded decreases in the sales of good and services in the September quarter.

“With more industry sectors registering negative data, the significant decreases were led by financial and insurance services, and the arts and recreation sector.

“With continued rises in wages and salaries, labour cost pressures are adding to the heat being felt by the business community.

“South Australian wages recorded the third strongest increase in the country, while local sales of good and services had the largest fall, equal with Queensland.

“Interest rate rises continue to hurt the many small businesses across the State and it is essential that interest rates are left on hold next week.”