The special COVID-19 edition of the survey, which attracted 2000 respondents shows the nature and extent of the impact that multiple economic shocks have had on the NSW economy over the first quarter of 2020.
“The responses from business owners are no surprise, but at the same time make for very sober reading,” Business NSW Regional Director Central Coast Paula Martin said.
“The survey shows the transition from early-phase impacts relating to supply chain interruptions and reduced overseas visitor arrivals to the full-scale economic crisis we are now seeing,” Ms Martin said.
“Business conditions on the Central Coast have deteriorated rapidly. There was a doubling of COVID-19-related revenue losses reported by respondents between weeks one and two of the survey period.
“Businesses have had to enter hibernation with significant adjustments to staffing levels and capital spending, and it’s clearly the case that some won’t make it through to the other side.
“The impact of COVID-19 on confidence is most apparent when examining business expectations for the next quarter where confidence has fallen at an unprecedented rate.
“While it is clear that COVID-19 represents the most significant threat to the economy across the state, the Coast has had the additional impact of bushfires and floods which kicked off a deterioration in tourism, retail and hospitality sectors over the Christmas period.
“We have seen a dramatic change from local business investing to grow their business last quarter to a complete refocus on reducing business costs. Maintaining business solvency has jumped three fold and sharp rises in cost of goods have now become the top costs for local businesses,” Ms Martin said.
“All of these trends are consistent with what we’ve observed through Business NSW’s daily engagement with businesses and why it’s so important that every tier of government do all that is possible to keep businesses in operation and staff employed.
“When given the all clear to resume normal business operations, we need to be in the best possible position to do that as quickly as possible,” Ms Martin said.
