August 27, 2020
Investment downturn is a warning on depth of COVID-19 impact: COSBOA
The fall in Australia’s business investment pipeline revealed in Australian Bureau of Statistics data makes it clear the economic challenges from the COVID-19 downturn are far from over, the Council of Small Business Organisations Australia (COSBOA) said today.
The ABS quarterly business investment survey released today showed capital expenditure fell 5.9 per cent in the June quarter. Overall the business investment pipeline for the 2020-21 financial year appears well in excess of $10 billion lower than the previous year.
Investment by Australian businesses in equipment, plant and machinery fell 7.6 per cent in the June quarter following a fall of 3.1 per cent in the three months to March.
COSBOA chief executive Peter Strong said the capital expenditure pipeline played a big role in supporting small businesses who support investment rollouts with their services.
“While some parts of the economy are getting through the downturn, there are several warning signs that the economic challenges are far from over,” Mr Strong said.
“The fall in the business investment pipeline will be a major challenge for GDP growth going forward.
“Under-investment has long-term consequences and this fall in investment will hurt businesses of all sizes, including the small providers that would be involved in the delivery and installation of major capital works projects for bigger companies.
“It remains vital for Australians to think about how they can support small business in this environment. When you’re planning to buy, consider how you can GO LOCAL FIRST and support your small, local businesses so they can get through this.”
COSBOA is running a six-month campaign with funding support from the Morrison Government urging Australians to GO LOCAL FIRST and shop with small, local businesses both in-store, and online.
Find out more about the campaign by searching “Go Local First”, checking out the #golocalfirst hashtag on social media, or visiting www.golocalfirst.com.au.
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