The latest Business Conditions Survey conducted by the state’s peak business organisation, the NSW Business Chamber, supports the need for additional stimulus to bolster economic activity, particularly in drought affected areas of NSW.
The survey highlights that many businesses across the state have been doing it tough, however there are preliminary signs that businesses think tax cuts and interest rate reductions will provide a welcome boost.
The survey was conducted following the recent State and Federal Elections.
“The impact of the drought cannot be overstated and is continuing to hurt businesses right across the state,” said NSW Business Chamber Regional Manager, Kellon Beard.
“In the Mid-North Coast and Coffs-Grafton area, business conditions remain weak, but fortunately, they’re not as bad as the previous quarter.” Mr Beard said.
“In fact our survey also shows businesses are hopeful conditions might improve in the next quarter - driven by an expected lift in revenue following on from what was a terrible March quarter.
“In part that could have something to do with the tax cuts the government said it would provide and perhaps also because of a drop off in anti-business rhetoric following the election outcome.
“The downside is that business don’t expect that lift in revenue to boost profit growth – mainly because operating costs are expected to surge again.
“While there are tentative signs business confidence could improve over the next quarter, the reality for government is that these expectations are fragile.
“So the NSW Government really needs to get on with the delivery of infrastructure, particularly infrastructure promised to regional NSW.” Mr Beard said.