New data from Xero shows mining remains Australia’s strongest performing small business sector, recording an annual sales growth of 14% year-on-year.
According to the latest Xero Australia Small Business Insights report, mining, utilities, and construction remain resilient, despite higher interest rates and fuel prices. Discretionary sectors such as hospitality recorded the weakest sales growth of 2.1% year-on-year, alongside retail (3.4%), and arts and recreation (3.5%).
The Northern Territory and Queensland recorded the largest sales growth by state, at 8.4% and 8.2% year-on-year, respectively.
Sales were strongest in April, rising 10.7% year-on-year, before slowing sharply to 4% in May and 4.8% in June.
Economist Louise Southall says the June quarter reflects the economy shifting toward a more uncertain second half of the year.
“After a strong start to the year, pressure started to show in the small business economy in the June quarter,” Southall says.
“Consecutive interest rate rises and elevated fuel prices have taken the heat out of the economy. Growth is still positive, but those macroeconomic pressures are now weighing on both consumer spending and business confidence.
“Looking ahead, wider economic forecasts line up with what we’re seeing: ongoing global uncertainty and the situation in the Middle East are likely to keep weighing on small business sales and hiring for the rest of the year.”
Xero is a global small business platform that helps customers supercharge their businesses by bringing together the most important small business tools.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
