Friday, 29 April 2022

Australian Federal Election 2022: and the economic outlook gets gloomier for us all


Bottom line, cost of living and other economic pressures are not going to ease anytime soon, with almost half of all businesses now passing on cost increases to customers.


Australian Bureau of Statistics (ABS), media release, 28 April 2022:


Source: Business Conditions and Sentiments, April 2022


More than half (57 per cent) of all businesses experienced increases in the cost of doing business over the three months to April 2022, with almost a quarter (21 per cent) reporting costs had increased to a great extent, according to data released today by the Australian Bureau of Statistics (ABS).


Consistent with the results from March, most of these businesses had seen increases to the cost of fuel or energy (83 per cent) and the cost of products or services used by the business (82 per cent).


ABS Head of Industry Statistics, John Shepherd, said: More than half of the businesses with higher costs (52 per cent) did not increase their prices. For those that did increase prices, 42 per cent had partially passed on costs and 6 per cent had fully passed on the increases to customers.”


Businesses also provided information about other actions they had taken in response to increased business costs.


Over a third (39 per cent) of businesses had made changes to their operations or processes and 17 per cent had renegotiated payment terms with customers and suppliers,” Mr Shepherd said.








The results also provided information about business staffing levels. One in five businesses (18 per cent) did not have enough staff in April 2022, consistent with findings in January 2022.


More than four in five businesses (84 per cent) with staff shortages were unable to find suitable staff, rising from 69 per cent in January. Uncertainty due to COVID-19 was less likely to be an influence on staffing levels (36 per cent compared to 62 per cent in January).


Further information, as well as insights into supply chain, are included in Business Conditions and Sentiments. 


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