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NSW has experienced a slight shift in small business confidence, increasing by 4 percentage points.
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NSW business confidence remains subdued despite uptick
21 January 2025
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7 minute read
The NSW Small Business Commissioner has revealed small business confidence across the state has seen a slight uptick since the end of last year.
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At the end of 2024, SME confidence shifted upwards by 4 percentage points to 28 per cent between November and December.
Commissioner Chris Lamont said despite the latest survey results having highlighted an improvement in business confidence, the outlook of business owners remained uncertain.
“Businesses are holding off major business decisions such as capital expenditure and hiring staff according to the latest survey,” Lamont said.
“Despite the improvement, overall confidence levels remain subdued amidst persistent and challenging trading conditions.”
Based on the survey results, businesses in greater Sydney were significantly more confident about their prospects than their regional counterparts.
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Business conditions deteriorated in December amid expectations about revenue and profitability declining and concerns about input costs increasing.
It was also found that 46 per cent of businesses expected a decline in profitability and 12 per cent expected a rise, while 37 per cent anticipated a decline in revenue and 16 per cent expected an increase.
In addition, 86 per cent of businesses voiced concerns about the cost of business inputs, which was 3 percentage points above the series average.
Lamont said 37 per cent of businesses that had plans to expand were looking to hire additional staff and 28 per cent of businesses indicated they had plans to grow, alter or expand their operations.
These figures such as business investment decisions relating to staff and capital expenditure had fallen in December, according to Lamont.
“The number of businesses exploring new ways to grow, alter or expand their operations hit a record low in December; this may have been affected by seasonal factors,” Lamont said.
“Looking towards 2025, the outlook of small businesses remains pessimistic – 66 per cent anticipate a difficult trading period ahead. Only 4 per cent of respondents expect 2025 to be an easier year for their business, while the remaining 30 per cent were neutral.
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