Now that the election's over, it's time to get back to business. Here are four stories to help you stay in the loop:
Vehicle sales fall 12.2%
Business revenues rising
Firms facing twin pressures
Office market booming
Read more below.
The motor vehicle industry is missing out on valuable sales due to the supply chain problems that are affecting the world. A total of 81,065 new vehicles were sold in April, which was 12.2% lower than the year before, according to the Federal Chamber of Automotive Industries. However, FCAI chief executive Tony Weber said the year-on-year decline was due to reduced supply rather than reduced demand.
"This is a reflection on the global automotive industry’s ability to supply vehicles to not only the Australian market, but all markets throughout the world," he said. "Automotive manufacturers continue to suffer from a shortage of microprocessor units, which is impacting their ability to ramp up production to pre-pandemic levels. "Covid-19 continues to impact manufacturing and supply, particularly where factories have been forced to close and shipping operations are yet to fully recover. This is being reflected in the extended delivery times for new vehicles.” Contact me if you need a company car
Businesses throughout the economy have reported year-on-year increases in sales. Household spending in February was 7.7% higher than the year before, according to the Australian Bureau of Statistics. Spending increased in every state and territory, from 0.6% in the Northern Territory to 13.9% in Victoria.
The sectors that enjoyed revenue increases were:
Clothing & footwear = up 20.2%
Recreation & culture = up 17.8%
Hotels, cafes & restaurants = up 15.6%
Transport = up 15.4%
Food = up 7.6%
Furnishings & household equipment = up 7.1%
Health = up 2.2%
The only sectors that experienced falls in revenue were:
Alcoholic beverages & tobacco = down 10.3%
Miscellaneous goods & services = down 0.8%
Businesses throughout the economy are dealing with the simultaneous challenges of rising costs and staff shortages, according to the Australian Bureau of Statistics. Over the three months to April, 57% of companies experienced increases in the cost of doing business. Of those:
52% passed on none of their increased costs
42% passed on some of their increased costs
6% passed on all of their increased costs
Businesses reacted to these cost increases in different ways, with:
39% making changes to their operations or processes
17% renegotiating payment terms with customers and suppliers
16% deferring or canceling investment plans
13% seeking additional funds
Meanwhile, 18% of businesses reported that they didn't have enough staff in April. Of those:
84% were unable to find suitable staff (compared to 69% in January)
36% were impacted by covid (compared to 62%)
Australian office investment is set to surge in 2022, according to forecasts from multinational property group Knight Frank. Between January and April, there were $4.9 billion of office transactions in Australia's six major capital cities, with another $6.9 billion of stock on the market waiting to be sold. As a result, Knight Frank's national head of capital markets, Justin Bond, said transaction volumes for 2022 should easily exceed last year's figure of $16.1 billion. “We expect volumes to reach $20 billion in 2022, up 25% from last year, but below the record level of $25 billion reached before the pandemic in 2019,” he said. Mr Bond said there is "sustained demand" from American and Singaporean buyers, and "rising appetite" from German and Korean buyers. “We are seeing increased levels of investment opportunities coming to the market as borders open and confidence returns to the occupier market,” he said. Want to finance a property deal? I can help
I hope you enjoyed this month's newsletter. If you need any business finance advice, I'm always here to help.
Book a Free Appointment