Small business confidence in Western Australia has rallied after a slump last quarter, according to the August 2005 Sensis Business Index.
The report says business confidence rose 17 per cent in the May to July quarter, after falling sharply during the previous quarter.
The performance and confidence of small-to-medium enterprises (SMEs) improved around the nation, the report says, but the strongest rebound was experienced in WA.
The value of sales increased eight percentage points to 18 per cent, 10 per cent higher than the national result.
Numbers of SMEs reporting increased profitability rose to 19 per cent, a 16 per cent gain and 16 points above the national average.
Employment was also higher than the national average, growing 9 per cent to be four points above the national mark.
The cost of wages grew in line with the better employment, according to the report, with a 13 per cent hike.
Expectations remain high for the coming quarter, with SMEs expecting sales, prices and profitability to increase in the August to October quarter.
Support for the State Government also gained some ground lost in the previous quarter, the report said, and is now the highest since August 2001.
Despite the increase in support, SMEs still believe the Govern-ment’s policies do not help small business, with too many taxes, excessive stamp duty and overly influential union power among their concerns.
