A month of positives after a tough year
At this point, we really don’t need to repeat that 2020 has been a tough year for all. However, this month, we have seen an upward trend across many areas affecting small businesses. It’s great news as the year begins to draw to a close and we look forward to 2021!
Consumer confidence surges
A surprise to many, consumer confidence has risen for the third month in a row, despite the pandemic and the recession, according to a survey conducted by Westpac and the Melbourne Institute. It has increased enough to combat the March collapse and, in fact, consumer confidence in October 2020 has surged higher than it was in both October 2019 and October 2018.
This is said to be attributed to tax cuts announced in the federal budget. Westpac’s chief economist Bill Evans noted this has been the most positive public response to the budget, in relation to the impact on their personal finances, in at least 10 years.
Consumers planning to spend up this Christmas
The same Westpac and Melbourne Institute survey asked people about their spending intentions ahead of Christmas. It found that the amount of spending people were planning on this year was in line with the responses of people in the previous five years. This shows that, on the whole, Australians are planning for a normal Christmas, which is great news for retail businesses!
SME confidence is on the rise
The latest COVID-19 SME Weekly Tracker research has indicated that SME confidence is continuing to rise. Since last month, 10% fewer SMEs are reporting declining revenues; additionally, 45% of SMEs are expecting to return to pre-COVID revenue levels by the end of the year.
Jobs data from the report also indicated strong growth. There are 26% less SMEs reporting a reduction in employee numbers due to COVID-19 and a 6% increase in those SMEs filling jobs compared to the previous month.
These improvements are most likely attributed to the decline of new COVID-19 cases and easing restrictions across Australia. The research was conducted by market research consultancy ACA Research and customer experience research consultancy Fifth Quadrant.
Economy bounces out of recession
Australia is emerging from the recession; we have seen the sharpest rise in consumer confidence and property buying intentions since records were kept. Prime Minister Scott Morrison says this confidence is at a seven-year high, which is helping us out of recession. Additionally, loan deferrals are down across the Big Four banks, which is a strong sign of individuals’ financial stability.
House prices increase
In November, residential property prices increased nationally for the first time in five months, with the House Price Expectations index increasing by 12%, meaning it’s now only 7.3% below its level in March. Additionally, the ‘time to buy dwelling’ index rose 8% to 132 points, which is the highest reading since November 2013. These numbers signal a strong resurgence in the housing market, which is aided by record low interest rates.
