Good news from Australia’s small and medium enterprises this morning with the release of the NAB’s quarterly SME survey which showed that confidence and conditions are doing okay, even if a little subdued.
“SME business confidence eased again in the June quarter, but is holding up against heightened consumer anxiety with the support of positive sentiment in property and construction. Conditions rose slightly, but are still at levels suggesting sub-trend growth”, the NAB said in a press release.
The standout takeaway from this release however is the difference in performance between smaller enterprises and their larger rivals.
The NAB says:
A comparison of industry conditions for SMEs and larger sized firms (taken from NAB’s Quarterly Business Survey) suggests that smaller firms are performing better than their larger counterparts in a number of industries – as well as reporting better conditions overall. The largest disparities are occurring in construction (probably reflecting the larger role of house building in SMEs) as well as transport and the professional services (finance, property etc.), where smaller firms are performing much better.
Going forward the index also highlighted that profits and employment rose and while trading eased it is still quite high.
This is good news for the economy.