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 what their predictions were for the current September quarter.
Business NSW, Regional Manager for Western NSW, 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 72.2 per cent for the June quarter.
Similarly 51.5 per cent of businesses were forecasting lower profits for September compared to 71.4 per cent for June.
"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."
Ms Seccombe said easing of drought conditions and the influx of tourists to the region from June had provided "a much-needed jolt" for businesses in the Western NSW region, which covers the Central West and the Orana/Far West areas.
"Pleasingly, over 40 per cent 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 28 per cent," she said.
However, she said more than 30 per cent 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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