How could that be?
Well, Roy Morgan recently released the results of their Business Confidence survey for July 2018… and it was discovered that confidence in Australian businesses suffered a fall – for the third time in a row.
Not only that, but the index was down for the first time this year – at 3.4 ppts lower than in July 2017. (Although this is 2.7 ppts below the long-term average, which is 116.3 ppts.)
You might also find it surprising that it was New South Wales who led the decline with the lowest points in business confidence.
This is the first time Australia’s largest state has been behind the rest of the country, although the decline has been relatively steady since 2014.
It is speculated that July’s decrease in business confidence is due to the drop in expectations of the overall economy’s performance.
What is interesting is that 43.7% of surveyors are expecting bad times ahead. However, on a brighter note, 50.5% are expecting good times further down the track. This outlook hasn’t changed much since last year as it is only up 0.2 ppts upon last year’s results.
Only 40.9% of the businesses surveyed thought they were better off this time last year, compared to the 30.6% of businesses who said they were worse off than they were last year. It was also noted that businesses doing worse off financially had risen by 2.8 ppts compared to last year.
48.1% of businesses have confidence in their performance over the next 12 months. On the flip side, only 20.9% are expecting to be worse off next year.
… Where is your business headed?
The amount of Australian businesses who believe the next 12 months is a good time to invest growing their business is sitting at 50.9% - whereas 37.9% believe it would be a bad time to invest in their company.
NAB also recently ran a business survey, and the results closely align with Roy Morgan’s – both recording a noticeable fall in business confidence.
Westpac has commented saying the economy is usually affected by federal elections. And with all the drama going on lately – it’s no surprise!
The bad news is clients often hold on to their cash more tightly in these times. And that may result in spending less with you, or not being able to pay what they owe.
There is a simple method you can employ to help with cash flow in this time… offer monthly payments.
Why not make it easier for your clients to pay you? If cash is tight – let them pay manage their debts in small amounts, rather than avoid the outstanding lump sum all together.
Register for free and offer clients a no hassle, flexible and easy to use monthly payment option – and get paid in full within 3 working days while your client pays it off over 3, 6, 9 or 12-month period.