Small Business Momentum Survey May 2023

Business confidence has dropped further this month, reaching levels similar to those seen when NSW first entered a pandemic lockdown in 2020. Expectations around profitability and revenue are poor, with significantly more businesses anticipating a decline than those expecting an improvement. 

Interest rates are now at their highest level since April 2012, with the RBA increasing interest rates in June for the eleventh time in the past twelve months. This has been an increasing strain on business trading conditions.  

Cost of business inputs remains the top concern for small business for a fourteenth consecutive month, with 83 per cent of surveyed businesses expressing concern. This is followed closely by predicted retail electricity and gas price increases, as well as cash flow and/or working capital concerns.