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Second COVID-19 Business Conditions Survey released
05 Jun 2020 | Media Release
ACCI’s latest COVID-19 Business Conditions Survey provides an insight in to what we can expect for the economy in the June quarter, on the back of weak National Accounts figures for the March Quarter.
ACCI’s Chief Economist Ross Lambie said the second survey showed a growing share of Australian SMEs faced substantial declines of revenue in May.
“In May, 38 per cent of businesses reported a greater than 80 per cent decline in revenue relative to what they would normally expect this time of the year compared to 33.7 per cent in April, and over 80 per cent reported a decline of over 25 per cent relative to normal trading conditions,” Dr Lambie said.
“With more and more businesses entering those higher brackets of revenue loss, we can really get a feel for the sheer magnitude of trouble our small and medium businesses are in, after more than two months of trading restrictions.
“The ongoing hit to revenues due to the health-related restrictions is reflected in 39 per cent of businesses expressing concern about their short-term cash flow despite an easing in the concern about their long-term viability.
“The good news is the financial support provided by the JobKeeper payments along with changes to business operations, employee arrangements, and support from landlords and banks have collectively provided a buffer for businesses.”
The results of ACCI’s May COVID-19 business conditions survey adds further support to leading indicators pointing to a significant deterioration in the economy in the June quarter 2020.
The first survey was taken in April.