Sentiment remains strong given relative weakness through decade
Small to medium business (SMB) confidence in the Sensis ‘transport and storage’ segment has slipped slightly, its latest quarterly survey shows.
According to the Sensis Business Index September 2018 report reveals a 7 point drop to +35 points compared with the sector’s previous quarter, a rate that sits at the average for the economy.
This is a much shallower slide than some others, with ‘Finance and Insurance’ down 21 points to +38, ‘Retail Trade’ down 18 to +12 and ‘Communication, Property and Business Services’ down 13 to +43.
Overall, 55 per cent of perceptions are of the economy treading water now, with 56 per cent expecting the same to be the case in a year’s time.
Despite that, confidence remains positive, with Sensis reporting that less than 20 per cent of respondents have been “worried” in the past five quarters.
Gauge how far confidence has come since this time last year, here
“The confidence level of Australian SMBs fell but the net balance remains high, with the latest result of +42 still among the better scores recorded in the last seven years,” the report finds, with Sensis CEO John Allan noting: “For the 18 per cent who expressed feeling worried, their biggest concerns were financial, primarily due to decreasing sales or cost pressures.”
Those involved in handling freight are viewed as being subject to an unsettled business climate.
“Confidence for Transport and Storage fell to a below average level, continuing a volatile pattern for this sector,” the report says.
“Last quarter was relatively good for sales but not profitability. Expectations for each of the key performance indicators are positive while subdued.
“A seven-point decrease in the confidence balance to +39 places this sector three points under the national average.
“Healthy sales influenced confidence more than other factors, while cost pressures headlined the concerns expressed. Last quarter, the balances recorded for sales (+7), employment (+10) and wages (+23) were clearly above average, while prices (+4) and profitability (-7) were below.
“Expectations this quarter are positive albeit below the national average for each key performance indicator – sales (+14), profitability (+17), wages (+14), prices (+14) and employment (+2).”