The Shift Business Index

Shift Insights uses transaction data from a representative sample of business enterprises in Australia to gain insights into their financial and operational performance.

The Business Health Index is intended to calculate business health by measuring changes in liquidity.

  • The Running Balance measure is calculated by measuring changes in business liquidity to garner insights into the overall level of business health.
  • Baselined to Feb 2020, the Running Balance Index is up 4 points in April, however it remains down 11 points YOY.
  • Businesss in the Retail Trade sector lead the increase in liquidity over April, up 11 points from March, followed by Transport and Postal services, up 6 points.

Key Measures

Key measures such as Business Sales, Supplier Spend and Wage Spend can provide further insights into business liquidity.
  • Sales over April have slowed, falling 9 points following a strong March performance, although Sales remain 3 points higher YOY.
  • Hospitality (down 9 points) and Retail Trade (down 8 points) led this decline in Sales across industries.

Key Measures – Business Costs
(Supplier Spend)

  • Supplier Spend tracks expenditures on goods and services, material and equipment, utilities, fuel and insurance.
  • Over 2022, supplier spend has increased a percentage, as businesses face rising costs across the board
  • Over the Month of April, businesses directed on average 54% of their incoming cash flow to meet supplier costs.

Key Measures - Business Costs
(Wage Spend)

  • Over 2022, there has been a steady increase in the amount that businesses are spending on Wages.
  • Business expenditure on wages is particularly marked in the Hospitality and Retail Trade Industries, up 4 points and 2 points respectively.

About the data

Shift Business Index

The Business Index was baselined to February 2021, using six months of average transactions as the denominator.

The Index was calculated by taking a representative sample of businesses from around the country (varied by size, industry and location) and looking at their credit transactions across all account types (e.g. transactions, savings and credit cards).