Tough times continue for small and medium businesses in the west

26 November 2018: The September Quarter 2018 Sensis Business Index, set to be released Tuesday 27 November, has revealed that Western Australian small and medium businesses (SMBs) are the second least confident of all states and territories.

The report, which measures the SMB activity, expectations and confidence over a three-month period, found that confidence levels among WA SMBs fell seven points to +22, sitting a massive 20 points below the national average to make them the second least confident state behind the Northern Territory.

The biggest concerns expressed by SMBs with a negative response (27%) were lower sales and cost pressures.

Sensis Chief Executive Officer, John Allan said: "Businesses in the west have been showing below average levels of confidence for a number of years, and what we have discovered in the September Quarter 2018 report are their finances are a driving factor at play."

"With 20% of small and medium businesses in Western Australia feeling the economy is slowing, trailing the national average by a seven-point net balance, they are still feeling the pinch of tough trading conditions."

However, when looking at future projections for the economy, SMBs in WA are more optimistic than any other state or territory, sitting 11 points about the national average (+14 versus +3).

"Businesses in the west are renowned for being positive and resilient even in tough times, so this optimistic outlook is pleasing."

While key indicator performances for last quarter remained low, falling behind most other states and territories, expectations for the current quarter were all positive and well above the national average.

"It'll be great to see businesses in the west find some relief from the tough times they have faced, and these positive balance predictions could mark the start of a better business environment," Mr Allan said.

Other interesting findings from the report:

• Support for the WA State Government increased three points, however remained negative (-4) and seven points behind the national average
• Support for the Federal Government increased a point to record a neutral balance
• Confidence in Perth was six points lower at +25 while in regional WA it fell 10 points to +13, both sitting below the national average

SMB confidence by state

Key performance indicators – Western Australia