Industry sentiment generally isn’t based on the rigours of data analytics and is often drawn from feedback and observations made among a group of similar businesses.
In automotive, for instance, tighter economic times are often indicated through changing consumer behaviors, things like less vehicle servicing coming into workshops, an increase of bald tyres on cars and consumers asking for the ‘most unsafe’ parts of the car to be fixed first.
While we are not there yet, indications from a recent small-to-medium sized business sentiment survey, by independent market research company, Fifth Quadrant, suggests there is tightening occurring with potentially weaker business conditions looming.
The latest report indicates a downward trend in revenue, profits, and employment figures, casting a subdued outlook on Australia’s economic prospects in the near future.
Profitability continues to be a major concern, with only half of the small and medium enterprises (SMEs) reporting profits last
month, a significant decline compared to the previous month’s figure of 59 per cent.
Furthermore, 19 per cent of SMEs also anticipate a decline in revenue for June 2024, the second highest figure since July 2023.
The data indicates unemployment will rise again next month and hence the ongoing commentary that interest rates will again point lower.
Hopefully, this will stimulate greater consumer confidence and spending activity.
Either way, VACC urges motorists to not put their vehicle’s service and repair at the bottom of the to-do list.
These can be life-changing oversights and ones that can have catastrophic consequences.
Words: VACC CEO, Geoff Gwilym. As published in the Herald Sun 28 June 2024