2014 economic trends for small business

Through our partnership with Kochie’s Business Builders, David Koch speaks with NAB Chief Economist of Markets, Rob Henderson about his outlook for 2014. Join them as they discuss some of the big trends in the economy that may impact small business.

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Through our partnership with Kochie’s Business Builders, David Koch speaks with Rob Henderson, NAB Chief Economist of Markets, about his outlook for 2014 and some of the big trends in the economy that may impact small business.

 

  • The housing sector has responded well to the RBA interest rate cuts, so in early 2014 we should see increased activity in housing construction with many small businesses benefiting – especially builders, tradies and retailers.
  • Whilst household confidence is up following the election, consumers are still reluctant to spend and their savings rates are high. So retailers are going to have to provide customers with more than just a good price now. They’ve got to give customers a good experience as well as pre and after sales service.
  • The unemployment rate is rising and the economy is growing, but a lot of that growth is expected to come from exports over the next few years which is capital-intensive and therefore not requiring a lot of labour. Businesses involved in servicing exports, mining and energy companies will be the key beneficiaries of that growth.
  • The growth of middle income earners in China and across Asia, is providing the opportunity for Australian small businesses to export their services, such as tourism. There are more inbound Chinese tourists to Australia than any other country, with the exception of New Zealand.

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