Economy

Business confidence dropped in August, thanks largely to increased global uncertainty, major falls in equity markets and a widespread fear of European debt.

Business failures around the world are at an all time low, but it seems local businesses aren’t enjoying this global trend.

The Rugby World Cup could inject as much as $US1.67 billion into the global sports economy and $US654 million to the New Zealand economy, thanks to the influx of international visitors to the host country.

The jobless rate rose 0.1 percent last month to take unemployment to 5.3 percent, a 10-month high, despite widely held expectations the rate would remain steady.

The Victorian Government has detailed plans to fund a $6 million strategy to better prepare the state for natural disasters.

Housing, food and transport now account for half of Australian’s household spending, according to a six yearly survey released by the Australian Bureau of Statistics (ABS).

The Reserve Bank of Australia (RBA) has announced it will leave the cash rate unchanged at 4.75 percent for the tenth consecutive month.

New South Wales Treasurer Mike Baird has unveiled his first budget, delivering a deficit of $718 million in 2011/12 and promising to return the budget to surplus in 2012/13. But what does it hold for businesses?

Small business profitability slid to a record low during the last quarter, with many expecting to see more falls over the next year. Despite this less than positive news, many reported they’d be boosting their online and social media presence in the coming months.

Inflation fell 0.1 percent in August after rising 0.3 percent in July, with sliding prices of fruit and vegetables more than offsetting price rises for private motoring, furniture and furnishings, and household services.

Local businesses continue to fall behind when it comes to using a website to promote themselves, with research finding the majority of sites have substandard search engine optimisation (SEO).

Accounting and legal practices have reported a slow down in SMB growth over the past three months, as the middle market faces rising international and domestic economic pressures.

Local CEOs are rapidly losing confidence in the economy; with the latest figures from The CEO Institute Business Confidence Index demonstrating a huge drop in positive sentiment.

Business failures rose 25 percent for the three months to June to reach their highest rate in 12 months, according to the latest Dun and Bradstreet (D&B) figures.

Superannuation funds have had a disappointing start to the new financial year, with median growth funds (61 to 80 percent growth assets) falling 1.5 percent in July as a result of weak share markets globally.

The Do It Yourself (DIY) and home improvement industries are expected to flourish over the next 12 months, with other industries more likely to feel the crunch of limited consumer spending, according to new research by IBISWorld.

Accountants are expressing concern that the financial performance of their small business clients are being put in danger by the carbon tax, with many convinced SMBs won’t be adequately compensated by the Government when the tax is implemented.

Many Australian businesses don’t put enough focus on customer retention strategies to ensure growth during tough economic times, which is becoming increasingly essential given the current economy.

Jobseekers in the finance industry are placing more emphasis on long-term career development than on monetary gain, suggesting the job market isn’t enjoying the same stability it did last year.

Demand for business banking products has dropped significantly over the past four months, with commercial banks including the Big Four local providers as well as regional and international banks all reporting a downturn in demand.