Business confidence is something that’s widely reported on a month-to-month basis, but what exactly does it entail and why is it so important? Improved sentiment is something that can benefit companies of all sizes and sectors, from sole traders to medical startups in Bankstown.
Thankfully, recent indices seem to suggest that sentiment is improving, with the potential to bring far-reaching advantages to Australian companies. So, here’s a look at the current state of affairs and the implications it could have for small business accounting in Strathfield.
Weathering the economic storm
It’s no secret that Australia has faced its fair share of economic headwinds over recent months and years. From the challenges of the global financial crisis to the frequent change in prime minister, there’s been no shortage of turmoil for companies to deal with.
In March, 7,700 more people took on jobs compared to the previous month.
However, it’s now become apparent that the economy is emerging from these difficult times with its head held high – and businesses are sitting up and taking note.
The NAB Monthly Business Survey for March showed that confidence and business conditions had both started to lift, giving greater reassurance to companies. This is partly down to non-mining sectors stepping up to the plate, something the economy has needed since the slowdown in the resources boom.
“The lift in business confidence suggests a lower risks of contagion from global uncertainty, but also provides some assurance that gains in conditions will be sustainable,” explained Alan Oster, NAB Chief Economist.
And it’s not only NAB that’s witnessed this rise in confidence. Roy Morgan Research’s leading customer confidence index was up 2.4 points in March, which was mainly a result of businesses anticipating improved economic conditions over the next 12 months.
Improvement in employment conditions
Unemployment has also been a problem for the Australian economy over recent years, but recent data suggests this is now starting to improve. Australian Bureau of Statistics (ABS) data shows the trend annual employment growth rate registered at 2.2 per cent, while unemployment was down to 5.8 per cent.
Business confidence has started to climb, benefiting medical startups.This illustrates that businesses are keen to take on staff, therefore increasing the need for medical companies to set up their SuperStream in Bankstown. The ABS noted that in March, 7,700 more people took on jobs compared to the previous month, representing a rise of 0.1 per cent.
As sentiment improves and employment conditions follow suit, opportunities for growth among medical businesses seem to be on the rise.