Businesses under Continuing Pressure – Media Release

July 30, 2020

REVENUE DECLINES AND FALLS IN HOUSING APPROVALS SHOW BUSINESSES UNDER CONTINUING PRESSURE

 

Economic data released today shows the COVID-19 pandemic continues to put pressure on small businesses through revenue declines and an ongoing downturn in housing construction, the Council of Small Business Organisations Australia (COSBOA) said.

Almost half of all businesses (47 per cent) reported declines in revenue last month in a survey published by the Australian Bureau of Statistics.

Separately, housing construction approvals fell to an eight-year low, according to ABS data.

COSBOA chief executive Peter Strong said, “This data from the ABS shows the magnitude of the impact that this pandemic is having on small businesses.

“The revenue impacts are widespread across industries. It’s a reminder that hundreds of thousands of businesses are in a deep hole, and there’s a long way to go in this recovery.

“That’s why it’s important for Australians to support small businesses in their area and choose to GO LOCAL FIRST, shopping with them in store, buying from them online, and using their services.”

The ABS survey found that 27 per cent of businesses are also expecting a decline in revenue next month.

Mr Strong said the fall in housing construction approvals in June, which were almost 16 per cent down on last year, highlighted the dire conditions in the building industry across the country.

According to the ABS, dwelling approvals saw double-digit declines in New South Wales (14.8 per cent), Western Australia (11.7 per cent), Queensland (10.9 per cent) and Tasmania (10.8 per cent). Smaller falls were recorded in Victoria and South Australia.

Mr Strong said: “The low level of building approvals is going to directly affect the work available to small businesses in construction.

“Anyone thinking about any sort of housing renovation or construction at the moment should consider how they can ensure they are supporting small businesses with their plans by using small local contractors.”

ABS data showed there was a welcome rise of 11.4% in the value of additions and alterations to residential homes.

ENDS

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