Almost half of businesses (46 per cent) reported that operating expenses had gone up in the past four weeks, according to new data released today by the Australian Bureau of Statistics (ABS).
Tom Lay, ABS head of business statistics, said: ‘Data from today’s Survey of Business Conditions and Sentiments, shows that while the pressure from fuel prices had eased, there were more businesses that had noted higher costs.
‘The main reasons behind these higher costs included rising businesses overheads for 65 per cent, staffing related costs for 40 per cent and upcoming finance or debt commitments for 19 per cent of businesses.’
Businesses in industries with a heavy reliance on fuel were more likely to report operating expenses had gone up.
These included Agriculture, forestry and fishing (72 per cent), Manufacturing (55 per cent), Accommodation and food services (55 per cent) and Transport, postal and warehousing (49 per cent).
More than four in five of businesses in Professional, scientific and technical services (84 per cent) reported business overheads as a factor for rising operating expenses, an increase of 29 percentage points since last month.
Almost two thirds of businesses (60 per cent) in Construction also reported experiencing higher operating expenses due to business overheads (+24 percentage points).
The rise in the number of businesses reporting higher business overheads and increases in staffing related costs was most notable in small businesses – up 14 percentage points while staffing related costs rose 9 percentage points.
Almost one in seven small businesses (13 per cent) indicated they needed financial or advisory assistance or support, and over one third (36 per cent) indicated they would seek assistance in the next four weeks.
Businesses continue to adjust their operations in response to fuel prices and availability, with almost half (44 per cent) absorbing cost increases (-3 percentage points), 15 per cent increasing prices (+3 percentage points), and 6 per cent introducing a fuel surcharge or levy.
‘Businesses in Transport, postal and warehousing were the most likely to increase prices in response to fuel prices and availability over the past four weeks, which is then passed onto other suppliers or customers.
‘Almost one third of businesses reported their revenue had fallen, which was most evident with businesses in Information media and telecommunication, Wholesale trade, and Accommodation and food services.
‘Looking forward, around one third of businesses in Information media and telecommunications, Administrative support services, and Accommodation and food services all expect revenue to fall in the next four weeks,’ Mr Lay said.
