The industries hardest hit by economic downturn
Small business figures indicate a recession could be on the horizon, with micro-businesses across nearly every sector reporting negative revenue over the 2019 financial year.
Research from invoicing and expense tracking firm Invoice2go found that some Aussie businesses have seen significantly lower demand for their services compared to last year.
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The average revenue generation was 7.6 per cent lower than last year, or a contraction in revenue of $8,315.
Invoice2go CEO Greg Waldorf sounded the alarm on the importance of small business activity to the broader economy.
“Small businesses are Australia’s economic backbone, making up 97 per cent of all Australian companies. This critical data-based look at what's really happening across the small business sector is an important indicator for the country’s health,” he said.
“After analysing our users' invoicing activity, it's hard to deny what are clear signs that point to a downturn, at the very least. And worse still, such figures are even indicative of a possible recession on the horizon."
These were the five industries that saw the biggest decline:
Interior design: 22 per cent decline
Average invoiced amount decreased from $123,975 to $96,809Finance, insurance, real estate and consulting: 20 per cent decline
Average invoiced amount decreased from $102,353 to $81,937Veterinary and other pet services: 13 per cent decline
Average invoiced amount decreased from $142,079 to $123,249Education, health and personal care: 13 per cent decline
Average invoiced amount decreased from $62,406 to $54,553Transportation and warehousing: 10 per cent decline
Average invoiced amount decreased from $115,066 to $103,541
The plumbing and HVAC sector was one exception, seeing 3.8 per cent growth with the average invoiced amount up to $137,150.
What about the other industries?
These are how other industries fared in the last financial year, based on average invoice.
The figures come weeks after Australia marked its weakest economic growth since the GFC.
The Australian Bureau of Statistics in September reported Gross Domestic Product grew just 0.5 per cent in the June quarter, bringing overall growth for the 2019 financial year to 1.4 per cent.
The economy grew 1.7 per cent in 2009.
The Reserve Bank of Australia has also cut interest rates to new record lows three times since June in attempts to stimulate the flagging economy.
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