Trading conditions improve – report

ANZ Research published this week has found that businesses are continuing to experience improved trading conditions with 76 per cent of firms surveyed reporting higher demand in quarter 3 of 2022.

According to the report most firms (51 per cent) also reported increased revenue and profitability in Q3 while 36 per cent of businesses brought on more staff in the last quarter.

“Importantly, expectations of future sales, revenue and profitability look encouraging with 81 per cent of firms expect to see increased turnover and nearly 88 per cent of enterprises are reporting expectations of improved profitability over the year ahead.

“As a result, businesses are adding capacity to service anticipated increase in demand with 52 per cent of the respondents expected to put on more staff through 2023.”

The report projects that despite a slow build, investment in new buildings and structures, and plant and equipment is expected to increase over the next 12 months.

This growth could, however, be affected by the persistence of high food inflation and automotive fuel prices into 2023 according to survey respondents, as this could impact demand next year.

While the pool of businesses surveyed was significantly smaller than previous ANZ research reports due to fewer respondents being available, the statistics appear to match recent economic growth trends and seem to bode well for further recovery in the business sector.

Importantly, expectations of future sales, revenue and profitability look encouraging ...

– Report