Key highlights show that while retaining and recruiting employees is still the most significant constraint for business, interest rates are having the highest impact on growth in more than a decade. And not surprisingly, 81% of businesses reported higher operating costs, 59% reported higher labour costs, along with a decrease in total sales revenue.
It comes as six in 10 businesses said their profitability weakened in the March quarter. For the third consecutive quarter, Pulse March quarter data showed macroeconomic issues were impacting businesses’ confidence in the future of the state and national economies.
Key report findings
General business conditions decreased slightly but remain satisfactory, and are expected to hold in the June quarter.
Total sales revenue in the March quarter decreased, indicating a marginal decline in sales.
While business confidence in the future of the state and national economies increased slightly, both remain weak.
63% of businesses indicated their profitability weakened during the March quarter.
Employment levels and capital expenditure were both steady in the March quarter, both satisfactory.
81% of businesses reported higher operating costs during the March quarter and 59% businesses reported higher labour costs.