19 October 2017
Small firms’ growth expectations remain high
Business confidence amongst small firms eased in September but remains respectable, according to ANZ’s quarterly
Business Micro Scope survey.
A net 14% of small businesses – down from 17% in the June quarter – say they are confident about general business
conditions for the year ahead. Within this group, micro firms (0-5 employees) slipped by 4 points and intermediate-sized
businesses dropped by 2 points.
The ANZ composite measure – a key proxy for growth based on firms’ own activity outlook, hiring, investment and profit
expectations – eased slightly to +20, but that’s still elevated. The composite measure for the agricultural sector
lifted to historic highs.
Agriculture based small businesses are more upbeat, consistent with firmer commodity prices. Business activity
expectations for agriculture-focused small firms topped the other sectors for the first time in over six years at a net
42%, while their profit expectations surged to a four-year high of +28%.
ends