Small Business Momentum Survey February 2024

Business confidence levels remained low in January and February, with just 31 per cent of businesses confident in their own prospects. Input costs, staff shortages, higher interest rates, compliance burdens and weaker customer demand are the primary reasons eroding business confidence. 

Increases in fuel, freight, insurance, materials, rent, wages and utility expenses have kept the cost of business inputs the top concern for the twenty-third consecutive month. 

The number of businesses looking to expand, grow or alter their operations also dropped by  
7 percentage points in this survey, down to a record low of 30 per cent, from 37 per cent in January.  

Expectations around profitability and revenue remain low, with only 14 per cent of businesses expecting profitability to increase, and 17 per cent of businesses expecting revenue to increase over the next three months. Of further concern are survey results that indicate more businesses predict a further decline in profitability and revenue (38 per cent and 30 per cent respectively).  This outlook coincides with the end of the summer holiday period.  

It is hoped that predicted falls in energy costs and stage 3 tax cuts might provide some much-needed relief and optimism over the coming months.