The Small Business Confidence Index produced by Momentum Intelligence came in at a reading of 28 points (out of a possible plus or minus 100 points) for FY2018 Quarter 4.
While that figure indicated positive confidence among Australia’s SME owners and operators, the results look much less rosy when put into the context of past readings.
Since the quarterly index began in September 2016, the reading has been on a downward trend, and is now almost half that of the initial reading (52 points).
Leading this decline in sentiment is cash flow, which has fallen from a reading of 60 points in the first quarter of the 2017 financial year (September 2016) to just 25 points as at June 2018.
Profitability has also fallen sharply, down from 56 points to 29 points over the same period.
Sentiment around business revenue has also fallen, albeit much less steeply – from 65 points to 43 points