Small to medium-sized businesses are experiencing improved business conditions for the first time since the start of the global financial crisis, a survey reveals.
The National Australia Bank (NAB) SME Quarterly Survey for September 2009 found that business conditions for SMEs have improved significantly, reaching positive territory for the first time since the global financial crisis began in September 2008.
For the September quarter, large SMEs with an annual turnover between $5m – $10m recorded the strongest improvement and were the best performing at 6 index points, up from -13. Small SMEs ($2 – $3M) recorded an improvement from -7 to 4 index points, with mid-sized SMEs ($3 – $5M) increasing from -6 to 3 index points.
The survey found the increase in sales was driven largely by an improvement in consumer confidence and demand.
According to Joseph Healy, group executive, NAB Business Banking, the results of the survey will be welcome news to business and government.
“SMEs are the real economic drivers in Australia and this latest survey, which reveals improvements in business conditions, profit outlook and customer confidence, will be welcome news to businesses and governments who are looking for continued signs of recovery,” he said.
However, he added that despite these positive survey results, businesses should remain cautiously optimistic about improving business conditions.
“Business confidence among SMEs for the September 2009 quarter improved significantly (by 22 index points) to a positive reading of 15 index points. While this is great news, we’re keen to see these positive signs continue well into 2010 before claiming we’re out of the woods,” he said.
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