PRESS RELEASE: SMEs remain optimistic as profitability recovers

Latest Press Release

6th October 2023: The September data provides cause for optimism, with YoY revenues rebounding from an annual low in August. Over half (53%) reported a profit during the previous month, an encouraging improvement from a low of 40% in July.
Encouragingly, concern surrounding higher interest rates fell from 87% in Q4 FY23 to 79% in Q1 FY24. Accordingly, the demand for additional finance has increased to 16%, the highest level of demand for finance since July 2022.
Loan stress has also subsided in line with this increased demand for finance. Only 6% of SMEs foresee difficulty in meeting their loan repayments, which is the lowest amount this year.
The SME Sentiment Tracker is conducted by leading business market research firm Fifth Quadrant in partnership with Ovation and tracks business sentiment across more than 400 small
and medium enterprises each month.
Sentiment surrounding the Australian economy looks to have turned a corner, with net sentiment
reaching its highest point since May 2022. In turn, over two-thirds (69%) believe their business is well insulated against the threat of recession in Australia over the next 12 months.
The Fifth Quadrant business confidence index has remained high at 99. Recruitment activity appears to mirror business confidence as of late, with 1 in 4 (23%) looking to fill job vacancies.
Despite this increase in recruitment activity over the last 2 months, 55% of those hiring found it more difficult to find suitable candidates in Q1 FY24 than 12 months earlier.
Fifth Quadrant, Managing Director, James Organ said: “In summary, although concerns may linger, this month’s data displays a positive picture for SMEs. The August results found a bullish confidence among SMEs despite challenges, and the September results have vindicated this with increased profitability and greater confidence in the Australian economy. Concerns remain about fuel and energy costs – and worries about interest rates are far from over – however, the data suggests a general sense of optimism amongst SMEs as we emerge from the winter months”.
ENDS

Media Contacts:

Name: James OrganCompany: Fifth QuadrantEmail: [email protected]Phone: +61299273333

Attachments:

October 6, 2023/by Reland Pigte

About Fifth Quadrant

Fifth Quadrant is an insights consultancy that partners with major brands to execute strategic market research programs. Too often, we see businesses confusing data with insights, but data alone is not enough. We provide organisations with insight about their markets and customers by layering context and expertise on top of data. This allows our clients to make better decisions and unlock tomorrow’s opportunities today.

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