Via UBS’ excellent Jonathon Mott:
SME health-check – deteriorating since the Melbourne lockdown
Our recent SME In-depth Report laid out key indicators to watch for the health of the sector. Higher frequency data by both the ABS and ACA Research indicates that SME performance has worsened since Melbourne re-entered lockdown. ABS data indicated that 50% of small businesses nationwide saw revenue decline over the month to 23 July, while only 16% reported a rise in revenue. Indeed, ACA Research suggests SME revenue is now down 33% since the pandemic began, slipping 4% since mid-June (and now only 6% above its trough on 19th April). Furthermore, ACA Research also indicates a record 41% of SMEs have decreased staff, with the average change in staff -18% (consistent with levels seen is May). See charts within for full details.
