Below trend growth to continue
The impact on SMEs
Supply chain issues moderated for the fourth straight quarter in Q2 and are expected to be less problematic in the next 12 months. When asked to rate the extent it was an issue for their business over the last 3 months, SMEs scored 3.8 pts out of 10, down from 4.0 pts in Q1 and a survey high 5.1 pts at the same time last year. SMEs also see less disruption to their business from supply chain in the next 12 months, scoring 3.7 pts overall (down from 3.8 pts in Q1 and 4.8 pts 5.1 pts at the same time last year).
Supply chain was less problematic in most states in the last 3 months. It was highest and increased in TAS (4.8 pts) and lowest in NSW and QLD (3.5 pts). SMEs in most states are more optimistic about the next 12 months, with the extent they believe supply chain will be an issue lower in all states apart from TAS (4.9 pts) and SA (3.7 pts). The outlook improved most in WA (3.9 pts), with NSW the most optimistic state (3.4 pts).
Supply chain caused less disruption for SMEs in most industries in Q2, except Personal (3.7 pts) and Business Services (2.7 pts). Though moderating, supply chain had the biggest impact in the Retail sector (4.9 pts), ahead of Wholesale Trade (4.6 pts) and Construction (4.2 pts). It caused the least issues in Accommodation & Hospitality (1.4 pts) and Health Services (2.3 pts).
Looking ahead 12 months, the outlook is mixed. SMEs believe supply chain issues will improve most in Construction (4.2 pts), Accommodation & Hospitality (1.1 pts), and Transport & Storage (3.7 pts). In contrast, SMEs operating in Personal (3.5 pts) and Business Services (2.6 pts) expect supply chain issues to be somewhat more challenging than expected in the previous quarter.
For more information, please see the full report Supply Chain – The Impact on SMEs (Q2 2023)
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