Business indicators provide mixed news

Submitted 2/03/2011

Migration for Business Growth

 

 Business Indicator figures for the December quarter released by the Australian Bureau of Statistics reveal mixed news for business.

The data shows gross profit in Australia decreased 2.8 per cent (seasonally adjusted), while wages and salaries increased by 1.5 per cent.

Industry sectors with the largest increases in sales of goods and services included financial and insurance services, while rental, hiring and real estate were amongst those with the largest decreases.

South Australia experienced a 1.6 per cent increase in sales of goods and services and a wage increase of 1.0 per cent in the December quarter.

Business SA Chief Executive Officer, Peter Vaughan, said that the indicators provided mixed news for business.

"These business indicator figures reveal our ongoing two speed economy, with some areas of the economy doing well while others are struggling," said Mr Vaughan.

"It is pleasing that eleven of the fifteen industry sectors recorded increases in the Sales of Goods and Services.

"However, with profits weakening it indicates that businesses are under pressure through lower margins and weak consumer demand.

"Higher interest rates are also playing a role in holding a back many sectors and the Reserve Bank must leave rates on hold and allow for a more widespread improvement in the economy.

"South Australia bounced back from the previous quarter to record a 1.6 per cent increase in the sales of goods and services during the busy December quarter.

"With continued rises in wages and salaries, labour cost presssures are adding to the heat being felt by businesses."