Business View Oceania - April 2024

OPENING L INES SMALL BUSINESSES START THEYEAR STRONGLYAFTER LAST YEAR’S SLOWDOWN Source- https://insidesmallbusiness.com.au/ , News editor, First Published 29th April, 2024 The latest Xero Small Business Insights report reveals a surprisingly strong start for Australian small businesses in the first quarter of 2024 after a soft December. The Xero Small Business Index averaged 120 points in the March quarter, up slightly from the December quarter result (115 points). This was driven by a sharp jump in the February (127 pts) and March (134 pts) results, a significant improvement compared to the December (89 pts) and January (98 pts) readings. “The improvement from a tough end to last year is a welcome sign that small businesses started 2024 better off,” Louise Southall, Xero Economist, said. “The Index dropped below 100 points in December last year, so it’s encouraging to see stronger growth in three critical success levers– jobs, wages, and sales–during the first quarter of this year.” Sales growth rebounded significantly in January (+6.1 per cent y/y) and February (+6.9 per cent y/y) following weak sales in December (+1.9 per cent y/y), which the Index notes as an indication that conditions are improving for small businesses. However, sales experienced a drop in March (-2.4 per cent y/y), which is being attributed to the earlier timing of the Good Friday public holiday when most businesses were closed. Healthcare (+13.5 per cent y/y) and real estate (+10.0 per cent y/y) were the best-performing sectors in January and February, and the only industries to record double-digit growth, according to the report. Small-business hiring continued to rise in the March quarter (+3.7 per cent y/y) and was moderately higher than average jobs growth in 2023 and the long-term average for this series (3.0 per cent y/y). Jobs growth was particularly strong in March (+4.3 per cent y/y) and was the largest rise in jobs since October 2022, which the Index attributes to small businesses feeling more confident about hiring new staff. The healthcare sector (+9.2 per cent y/y) led the gains. In contrast, the hospitality sector (-1.4 per cent y/y) recorded the third consecutive quarter of declining jobs. Meanwhile, wages growth is now sitting just above the long-term average for this series (+3.0 per cent y/y). However, the pace of growth is still below inflation and small business pay rises are below the national average, as indicated by the latest Wage Price Index 7 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 04