Insights into Australian business conditions and sentiments.
In responding to the survey, businesses are asked to provide a best estimate only, without accessing records or reports.
Business size categories used in this release:
For information on survey sample, response rates and the questionnaire, see Methodology.
Businesses reported on changes in revenue, operating expenses and number of employees over the last month and expected changes over the next month. This information has been collected each month since July 2020.
One in five (22%) businesses reported a revenue decrease in November. The proportion of businesses that reported a decrease in revenue has fallen each month since July. A greater proportion of businesses reported increased revenue in November compared to previous months (24% compared to 16% in October and 13% in September).
This is the first time in the monthly series that a greater proportion of businesses have reported increased revenue (24%) compared to decreased revenue (22%).
(a) Proportions are of all businesses
Sentiments related to monthly revenue expectations also improved, with a quarter (25%) of businesses expecting an increase in revenue for December. This is more than twice the proportion that expected an increase in revenue for August (11%) and September (9%).
The industries most likely to report an expected increase in revenue for December were:
A number of businesses commented that the easing of COVID-19 restrictions in Victoria and seasonal demand factors had influenced their revenue expectations.
(a) Proportions are of all businesses
In November, 8% of businesses reported an increase in the number of employees.
Medium and large businesses were more than twice as likely as small businesses to report an increase in the number of employees (19% and 20% compared to 8%).
(a) Proportions are of all businesses
Main factors reported by businesses in relation to the November increase in the number of employees were 'business expansion' and 'seasonal variation'.
One in ten businesses expect to increase the number of employees in December. These businesses were most likely to comment that 'seasonal variation' was influencing this expectation. Accommodation and food services (31%) was the industry with the greatest proportion expecting an increase in the number of employees for December.
The proportion of businesses reporting an increase in operating expenses fell from 24% in October to 18% in November.
(a) Proportions are of all businesses
Capital expenditure refers to acquisition of new or used assets e.g. vehicles, machinery and equipment, buildings and other structures.
Businesses reported on whether they usually have capital expenditure at this time of year and the capital expenditure plans they have for the next three months.
Large businesses were more than twice as likely than small and medium businesses to report that they usually have capital expenditure this time of year (52% compared to 10% and 24%). They were also more likely to report planned capital expenditure over the next three months (55% compared to 21% and 35%).
(a) Proportions are of all businesses
(b) Capital expenditure plans include those over the next three months
Businesses in Retail trade (41%) were the most likely to report planned capital expenditure over the next three months while businesses in Administrative and support services (7%) and Transport, postal and warehousing (7%) were the least likely.
(a) Proportions are of all businesses
Businesses that reported they had planned capital expenditure over the next three months provided information about whether the planned expenditure was higher, the same or lower than what is usual for this time of year. Those that had no plans also provided information about whether plans had been cancelled or deferred.
Of the 22% of businesses that had capital expenditure plans over the next three months, almost three quarters (73%) expect to spend the same or more than what is usual for this time of year.
| How those capital expenditure plans compare to what is usual this time of year(a)(b) | ||||
|---|---|---|---|---|
| Proportion of businesses with capital expenditure plans | Higher than usual | Same as usual | Lower than usual | Don't know |
| Small businesses 21% have capital expenditure plans(c) | 53% | 19% | 6% | 23% |
| Medium businesses 35% have capital expenditure plans(c) | 49% | 32% | 6% | 12% |
| Large businesses 55% have capital expenditure plans(c) | 29% | 44% | 19% | 7% |
(a) Proportions are of businesses with capital expenditure plans
(b) The sum of the component items may not equal 100% due to rounding
(c) Proportions are of all businesses
Businesses with capital expenditure plans over the next three months reported on the types of assets they intend to purchase.
(a) Proportions are of all businesses
(b) For example, office equipment, furniture, hand and power tools, forklifts or pumps
| Type of asset | Top reporting industries |
|---|---|
| IT hardware or software | 26% Professional, scientific and technical services |
| 25% Retail trade | |
| 18% Information media and telecommunications | |
| Registered road vehicle | 18% Electricity, gas, water and waste services |
| 13% Mining | |
| 12% Information media and telecommunications | |
| Other equipment or machinery (c) | 25% Retail trade |
| 21% Mining | |
| 20% Manufacturing | |
| Buildings and other structure | 15% Retail trade |
| 15% Education and training | |
| 10% Arts and recreation |
(a) Proportions are of all businesses
(b) Businesses could provide more than one response to the question
(c) For example, office equipment, furniture, hand and power tools, forklifts or pumps
Businesses indicated which factors had significantly influenced their planned capital expenditure for the next three months.
Less than one third (29%) of businesses reported future economic uncertainty influenced their planned capital expenditure. This compares with 59% of businesses in August.
(a) Proportions are of all businesses
(b) For August, proportions are of businesses that reported current or expected future demand influenced expenditure on capital
(c) Proportions are of businesses that reported that tax incentives for investment or other government support measures influenced expenditure on capital
(d) Proportions are of businesses that reported that access to businesses own funds or external finance influenced expenditure on capital
For those businesses with planned capital expenditure, the most common factor influencing expenditure plans, across all employment sizes, was demand for products or services.
| Small businesses | Medium businesses | Large businesses | |
|---|---|---|---|
| % | % | % | |
| Demand for this business's products or services | 49 | 47 | 43 |
| Business modifications in response to COVID-19 | 32 | 27 | 28 |
| Future economic uncertainty | 36 | 26 | 25 |
| Access to business's own funds | 41 | 33 | 28 |
| Access to external finance | 18 | 18 | 17 |
| Domestic or international supply chain disruptions | 21 | 20 | 16 |
| Other Government support | 37 | 39 | 18 |
| Tax incentives for investment | 40 | 37 | 17 |
(a) Proportions are of businesses with capital expenditure plans over the next three months
(b) Businesses could provide more than one response to the question
This release previously used catalogue number 5676.0.55.003