Decline rate eases
Private business growth rates are declining less steeply amid tentative signs of domestic economic recovery. |
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Click on graph to enlarge
Figure 3: Sales and profit growth experienced in the
past 12 months |
Western Australia and Queensland steady
Private businesses in Western Australia and Queensland stabilised their sales and
profit growth rates after a recent sharp drop. Businesses in Victoria, South Australia and New South Wales continued to trend downwards. |
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Figure 4: Sales growth experienced – by state
Figure 5: Profit growth experienced – by state |
Sales growth targets rise
Private businesses are once again planning to grow sales strongly over the next three years after medium-term targets slumped to their lowest level in March 2009. They are also setting more ambitious one-year growth targets. The gap between one-year and three-year targets has widened as businesses expect better economic circumstances in the medium term. |
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Figure 6: One-year and three-year sales growth targets |
Renewed profit growth optimism
Private businesses are similarly more optimistic about growing profits, with one-year and three-year targets recovering from a low in March 2009. |
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Figure 7: One-year target and three-year target profit growth targets |
CAPEX restrictions rise
Businesses are increasingly required to rein in their capital expenditure in line with growing constraints, and are more concerned about the price and availability of debt. |
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Figure 8: Key constraints on capital expenditure |
High wage costs top hiring obstacle
Businesses are now less concerned about a lack of qualified talent and more worried about high wage costs limiting their ability to hire staff. |
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Figure 9: Major hiring constraints faced |
Few businesses planning to lure workers
Standing out as an employer of choice is less of a priority for businesses, due mainly to the economic downturn making a greater talent pool available. This balance could shift quickly as stronger growth returns. |
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Figure 10: Planned changes to become employer
of choice |
Business planning key to meeting targets
Businesses working to a plan were far more likely to meet their targets than their counterparts that did not have one. |
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Figure 11: Relationship between business planning and meeting set targets |