Fed: Small business conditions up but still not good: ACCI

AAP General News (Australia)
08-20-2001
Fed: Small business conditions up but still not good: ACCI

CANBERRA, Aug 20 AAP - Small businesses are continuing to suffer despite an improvement
in economic conditions, a new survey has found.

The Australian Chamber of Commerce and Industry (ACCI) small business survey showed
the first improvement in business sentiment since February last year.

Sales revenue, employment and investment in plant and equipment all improved during
August, suggesting the sector had turned the corner.

But ACCI chief executive Mark Paterson said the survey continued to find more small
businesses showing a deterioration in conditions rather than an improvement.

"It is therefore best not to get too carried away with this upturn as yet," he said
in a statement.

"There is some way to go before the economy is properly back on its feet.

"Moreover, even if everything were perfectly sound here in Australia there are very
good reasons to be concerned about economic conditions in the rest of the world."

Mr Paterson said the survey found small business was extremely confident about the
future, with expectations of a general economic improvement.

Yet even this was patchy, with just 18.8 per cent of respondents expecting investment
levels to improve while almost the same number expect investment to contract.

Of more concern to the government, the survey found little change in employment expectations
among small businesses.

Non-wage labour costs was identified as the biggest impediment to small business investment,
followed by business taxes and charges and availability of qualified staff.

More than 40 per cent of respondents said they had recorded a fall in profitability
since May, while just 26.4 per cent had improved their bottom line.

The survey involved 1,135 businesses employing fewer than 20 people.

AAP sw/md

KEYWORD: BUSINESS ACCI

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