Business confidence in NSW has returned to low levels last seen during COVID lockdowns, according to the latest quarterly Business Conditions Survey from the State’s peak business organisation, Business NSW.

During the month of July and amidst what was expected to be a significant COVID outbreak, the Business Confidence Index fell to -68.6 (from -30.6 last quarter).

The Business Conditions Survey was completed by1,118 businesses and showed businesses have been buffeted by rising costs, skills shortages, supply chain issues and have some concerns about higher interest rates and energy prices.

“It’s time to start talking up our economy and the real opportunity for us to lock-in NSW and Australia into the top-tier of economies in the world”, said Business NSW Chief Executive Daniel Hunter.

“We should be positive that the fundamentals of the NSW economy remain strong. Above all else, we need to avoid talking ourselves into recession.” 

“There is no denying that many families and businesses are feeling the impact of rising interest rates, higher prices and there is some uncertainty at what is around the corner, but the green shoots are there. We have more people in work in NSW since records began, well above pre-COVID levels, and businesses are still seeing strong sales in the retail sector.” 

“We should be positive that the fundamentals of the NSW economy remain strong. Above all else, we need to avoid talking ourselves into recession.”

Mr Hunter said that the survey results made it clear that the business community needs action and certainty on key issues like expediting material supply options, reducing the cost of energy, expediting the migration of skilled workers, and reducing taxes and charges like payroll tax and tolls. 

“There is no quick fix, but the message from business to governments at all levels is a simple one: let’s get on with the job. Whether it’s allowing pensioners to get back into the workforce to cut our skills crunch, fast tracking development applications where appropriate or giving first home buyers the choice on upfront stamp duty or an annual property tax to help encourage movement of workers around the state, it’s time to urgently embrace productivity reform policies, so that NSW can come out stronger than ever before.”

62% of respondents supported the NSW Government’s proposal to provide first home buyers with a choice of paying an annual property tax or upfront stamp duty on properties up to $1.5m, while only one in five businesses have contingency arrangements in place to minimize disruptions due to staff absences due to COVID or illness. 

“There are challenges, but huge opportunities for businesses in NSW and we are committed to working with all sides of government to ensure business owners can continue to invest and grow for a brighter future.”

About Business NSW

Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826.