CENTRAL West businesses are predicting their sales revenue and profits will continue to fall, but the first signs of optimism since the coronavirus crisis started are being shown.
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Business NSW received responses from 47 firms across the Central West about how they had fared to June and their predictions for the current September quarter.
Business NSW Western NSW regional manager Vicki Seccombe said there was a long way to go, but hopes were rising.
Accommodation and food service businesses recorded the strongest turnaround when asked to look ahead to the September quarter.
- Vicki Seccombe, Business NSW
The research showed 45.2 per cent of Central West businesses believed sales revenue would be down in the September quarter, but it was an improvement on 72.2pc for the June quarter.
Similarly, 51.5pc of businesses forecasted lower profits for September compared with 71.4pc for June.
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"Our most recent quarterly Business Conditions Survey indicated that business conditions hit rock bottom in the June quarter, but capital spending, revenue, profit and staffing are approaching a turning point," Ms Seccombe said.
"The relaxation of trading restrictions appears to have provided welcome relief for the most impacted sectors. Accommodation and food service businesses recorded the strongest turnaround when asked to look ahead to the September quarter."
"Pleasingly, over 40pc of Western NSW businesses reported they were more optimistic about the impact of COVID-19 than they were in April, which is higher than the state average of 28pc," she said.
However, she said more than 30pc of businesses had reported they were at a high risk of failure.
"Businesses were only just at the starting gate for drought recovery, then COVID-19 hit, so many have now well and truly exhausted their capital and savings," she said.
"Businesses have entered a cost cutting phase which is starting to have a flow-on effect for customer demand, jobs and the potential for our economy to bounce back."
She said governments needed to work with business to minimise the affects of the coronavirus.
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David Fitzsimons
I am a senior journalist at the Central Western Daily concentrating on council, government and real estate issues. Before moving to Orange I filled senior roles at the Daily Telegraph, Daily Telegraph-Mirror and the Daily Mirror in Sydney. They included being an editor, news editor, chief of staff and reporter.
I am a senior journalist at the Central Western Daily concentrating on council, government and real estate issues. Before moving to Orange I filled senior roles at the Daily Telegraph, Daily Telegraph-Mirror and the Daily Mirror in Sydney. They included being an editor, news editor, chief of staff and reporter.
