Fuel prices and supply availability have negatively impacted 72 per cent of Australian businesses, according to new data released today by the Australian Bureau of Statistics (ABS).
Tom Lay, ABS head of business statistics, said: 'Today's data from the Survey of Business Conditions and Sentiments, brought back earlier this month, helps us better understand the economic impacts of the closure of the Strait of Hormuz on Australian businesses.
'Businesses across all industries were impacted by rising fuel costs from global volatility and ongoing supply chain disruptions.
'One in six businesses experienced disruptions in their supply chain, with transport, logistics, agriculture and small businesses among those most affected.'
Over one third (36 per cent) of businesses reported revenue had dropped over the past four weeks, while more than a quarter (27 per cent) expect revenue to fall over the next four weeks.
Half of all businesses reported operating expenses had risen, with fuel prices and freight and delivery costs the most frequently reported reason.
| Fuel prices (%) | Freight or delivery costs (%) | |
|---|---|---|
| Agriculture, forestry and fishing | 94 | 85 |
| Mining | 78 | 17 |
| Manufacturing | 94 | 78 |
| Electricity, gas, water and waste services | 97 | 66 |
| Construction | 86 | 56 |
| Wholesale trade | 85 | 72 |
| Retail trade | 86 | 73 |
| Accommodation and food services | 86 | 84 |
| Transport, postal and warehousing | 95 | 37 |
| Information media and telecommunications | 74 | 39 |
| Financial and insurance services | 47 | 15 |
| Rental, hiring and real estate services | 69 | 44 |
| Professional, scientific and technical services | 70 | 53 |
| Administrative and support services | 80 | 43 |
| Education and training | 76 | 44 |
| Health care and social assistance | 86 | 42 |
| Arts and recreation services | 64 | 55 |
| Other services | 78 | 48 |
About two thirds (60 per cent) of businesses reported making changes to business operations because of fuel prices or availability in May.
This included absorbing cost increases (48 per cent), increasing prices (11 per cent), changing or delaying production targets, schedules or volumes (6 per cent) and implementing a fuel surcharge or levy (6 per cent).
Roughly one in four businesses (28 per cent) made changes to their workforce in response to fuel prices or availability, including reducing or suspending non-essential travel activities to reduce fuel consumption (15 per cent) and reducing the size of the current workforce (9 per cent).
The ABS would like to thank all businesses that contributed to the results for this survey.
