NT small and medium businesses once again the least confident in the nation

27 November 2018: The September Quarter 2018 Sensis Business Index, released Tuesday 27 November, has revealed that small and medium businesses (SMBs) in the Northern Territory (NT) are again the least confident in the country.

The report, which measures the SMB activity, expectations and confidence over a three-month period, found that confidence levels in the NT fell a huge 21 points from the last quarter to +7, trailing 35 points behind the national average.

Sensis Chief Executive Officer, John Allan, said: "With the ailing economy continuing to cause hardship among businesses in the Northern Territory, it's not surprising SMBs are the least confident in the country."

"While across most states and territories we have seen declines in confidence from the June Quarter 2018 Report, the confidence levels recorded in the NT are the second lowest to date and it's clear that businesses in the area are feeling the pinch of an exceptionally tough period."

Confidence in Darwin decreased by 12 points to +11, by far the lowest metropolitan balance in the country, while regional NT confidence also suffered a significant fall of 28 points to +4, 32 points below the regional average and once again the lowest result seen across the nation.

"Unsurprisingly, businesses are citing unfavourable business conditions and diminishing sales as the key drivers of their decreased confidence," said Allan.

Support for the NT Government also fell from last quarter, dropping two points to -9 to sit just ahead of Queensland as the being the least popular among SMBs across the nation. The main criticisms were that the government did not understand small businesses as well as high taxation.

"Almost two in five SMBs in the north feel the economy is slowing, which sits as the lowest results recorded in the country for the tenth quarter in succession. It's natural for businesses to look for additional government support during tough times," Mr Allan said.

Northern Territory businesses were also the only SMBs across the country pessimistic about the prospects for the economy over the next twelve months, falling 32 points to -29, a massive 40 points below the national average.

"This is a really tough period being faced by businesses in the NT and it seems as though optimism and momentum is falling fast among SMBs."

Other interesting findings from the report:

· Expectations for all five key performance indicators (sales, wages prices, profitability and employment) decreased substantially and are the lowest in the nation by far

· SMB support for the Federal Government was six points lower at -14. This was the lowest rating recorded and 17 points below the national average

· 23% of ACT's small and medium businesses feel the economy is growing, while 13% believe it to be slowing down

SMB confidence by state