Xero has published its latest Small Business Index, which has shown an improvement in performance in the June quarter.
The development is attributed to continued job growth and improved payment times. But the period saw a decline in sales, which is an indicator of what’s to come in future months.
Hospitality businesses are hiring less than a year ago, with fewer jobs on offer and hiring falling 0.5 per cent y/y in the July quarter. It’s a stark difference compared to the national jobs growth average which sits at +4.5 per cent y/y.
However, it is also the sector to pay the largest wage increases (+3.6 per cent y/y). The findings have linked the weakness in jobs in the hospitality industry to a lack of skilled workers rather than small businesses not looking to hire.
The hospitality sector was also the only industry tracked by XSBI to record a decline in sales growth in the June quarter, sitting at -0.6 per cent y/y.
There’s good news on payment times, with small businesses waiting an average of 21.3 days to be paid in the June quarter, down from 22.5 days in the March quarter.
The end of financial year typically results in improvements of reporting time due to businesses wanting to settle accounts quickly.
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