COMERCIAL confidence in the region has taken a hit, despite some businesses recording increased sales and profits, according to the NSW Business Chamber Central West Orana.
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A survey for the March 2016 quarter indicated business conditions in the Orana, Far West and Central West regions were challenging and optimism about the state's economic performance was lower than previous surveys.
"Our survey of more than 90 local businesses shows challenging business conditions across a number of key indicators such as sales revenue and profit, and there has been a notable reduction in respondents' optimism about the performance of the state's economy," NSW Business Chamber Central West Orana regional manager Vicki Seccombe said.
"Local business' assessment of the performance of the NSW economy is down more than 18 points this quarter, which puts this indicator in negative territory on the index. Although respondents tend to report less favourable conditions in the March quarter, this fall is much larger than is typical for the start of the year.
According to the survey 40 per cent of businesses had increased sales revenue and 32 per cent recorded increased profits but overall, both indicators dipped.
However, Ms Seccombe said this was consistent with previous first quarter results across the state as revenue typically fell in the retail and hospitality sectors after the busy holiday sales period.
"It remains to be seen whether this result represents a turning point for the region and the state more broadly or whether it is an isolated moderation in line with what is typical for the first quarter of the year," she said.
"More local businesses reported increases in capital spending this quarter, with this indicator improving by eight points and moving into positive territory on the index. Total staffing numbers also improved slightly for region's businesses, with 14 per cent of local businesses increasing overall staff numbers this quarter, although just 8 per cent of businesses expect to increase staff numbers in coming months.
"Overall business conditions in the Central West, Orana and Far West appear to be challenging, with this quarter's survey results taking some of the gloss off the stellar results recorded in the region in the previous two quarters. The June quarter results will give a clearer indication of where the momentum lies."
Ms Seccombe said there was an opportunity for the state and federal governments to implement schemes that would make it easier for businesses to grow and increase employment.
