Confidence levels stabilise in February

The NSW Small Business Commission’s latest Momentum Survey shows confidence levels stabilised between January and February 2025. Small business confidence rose marginally, increasing by one percentage point to 25 per cent. Despite this improvement, confidence levels remain subdued amid challenging trading conditions, including rising input costs, compliance burdens, staff shortages, insurance, weaker customer demand, government fees and charges, policy uncertainty and an uncertain economic outlook. 

While confidence levels remained relatively stable between January and February, confidence improved throughout February following the Reserve Bank cash rate decision. There was a seven percentage point increase in confidence in the week following the cash rate decision when compared to the week prior. 

Overall, business conditions improved in February, marked by rising revenue and profitability, along with decreasing concerns about input costs. Fourteen per cent of businesses expect their profitability to increase over the next three months, an increase of four percentage points from January. Similarly, the number of businesses reporting an increase in revenue also rose in February. Nineteen per cent of businesses anticipate their revenue to increase over the next three months, up three percentage points from January. Despite declining, the cost of business inputs remains the top concern for small businesses, with 84 per cent expressing concern in February, down two percentage points from January.