Trading conditions for Western Australia's small businesses are at a 12-year high, according to the November Sensis Business Index released today.
Trading conditions for Western Australia's small businesses are at a 12-year high, according to the November Sensis Business Index released today.
The survey, undertaken quarterly by Sensis to track and understand the views of small businesses, is the largest of its kind in Australia.
Report author Christena Singh said both profit and sales strengthened further during the August to October quarter for Western Australia's small and medium enterprises and were at record high levels.
"We have seen another substantial improvement in profit and sales for WA's small businesses this quarter.
"WA has again this quarter topped most of the indicators that measure the sector's health.
"In fact, WA's profit performance has not been at a higher level since November 1994," Ms Singh said..
The profitability indicator has risen another eight percentage points this quarter to 28 per cent.
"The indicator outpaces the national average by 17 percentage points," she said.
The sales indicator rose a further three percentage points in Western Australia during the quarter.
"Sitting at 33 per cent, sales growth has only been at a higher point once in the last 12 months," she said..
In line with booming trading conditions, business confidence skyrocketed in Western Australia by eight percentage points during the quarter to 73 per cent.
"Business confidence in WA has not been higher since May 1996."
Ms Singh said Western Australia also reported the highest level of wages and prices, and the second highest employment level.
"One area in which Western Australia did under-perform was capital investment.
"After strong investment last quarter, the indicator dipped into negative territory in the August to October quarter. However, it is still at a level above the national average."
The Sensis® Business Index suggests the bumper results are not likely to dissipate in the short term, with Western Australia's small businesses recording the strongest expectations for sales, employment, wages and profitability in the coming quarter.
Despite the buoyant economic conditions, support for the Western Australian Government by SMEs slipped again, with the indicator down nine percentage points.
"At negative 18 per cent, there is only one other state or territory government with less support."
Since 1993, Sensis has been surveying Australia's small and medium enterprises every quarter. For the November Sensis Business Index 1,800 small and medium enterprises were interviewed from 23 October to 21 November 2006.
