The latest results from the NSW Business Chamber showed almost all key business conditions were down across the Central West region, with profits and employment both dropping.

The index measures respondents’ perceptions of the economy’s current performance and, while a drop in revenue and sales activity is typical at the beginning of the calendar year, the result for the March 2018 for Western NSW saw a sharp drop to -8.3 points.

According to Western NSW Business Chamber regional manager Vicki Seccombe, business owners are claiming to be feeling the pinch of rising electricity costs.

“Although business operators remain upbeat about their prospects, and the economic outlook for the year ahead, profitability and growth are being constrained by the continued decline in energy affordability, business operating costs and skill shortages,” Miss Seccombe said.

“Energy costs, in particular, are a major concern with 43 per cent of our region’s businesses surveyed highlighting it as a key cost-control priority.”

Other areas identified to find savings included inefficiency (46 per cent), errors and wastage (36.9 per cent), operating costs (43.1 per cent) and overheads (35.4 per cent).

While local businesses have had a tough start to the year, the expectations for the rest of the year were much more positive.

Respondents indicated they were expecting a much better performance from the NSW economy in the months ahead.

“Businesses in NSW are ready to invest and have a positive economic outlook but reducing taxes on jobs and investing in skills, particularly for our young jobseekers, are a must if we are going to maximise the economic potential of the state,” Ms Seccombe said.

The positive to come from the survey was the chamber’s operating cost index, decreasing to 30 points, down from 41.5 in December, and the sales revenue index whilst down, did remain positive at 4.3 points.