Shift uses transaction data from a representative sample of business in Australia to gain insights into their financial and operational performance.
The Liquidity Index is calculated by measuring changes in business liquidity to garner insights into the overall level of business health.
Liquidity fell 7 points in January, down 17% YoY. This drop was felt across most industries over January, with a notable exception being the Retail Trade sector.
Retail Trade continued to grow its liquidity, up 2 points MoM, following strong sales over December (growing 5% MoM from November).
Within the Transport Sector, liquidity fell by 7 points, down 6.8% MoM (down 6.9% YoY).
The Sales Index tracks changes in sales to measure business performance.
Sales fell by 21 points over January (-19% Mom, + 9% YoY). This was driven by seasonality over the holiday period, reflecting similar performance in January 2022, when sales fell 23 points (-22% YoY).
Supplier spend tracks business costs and expenditures on goods and services, material and equipment, utilities, fuel and insurance.
Supplier spend fell 22 points, (down 18% MoM) over January, however maintained its 8% growth YoY. The Hospitality Industry saw the least change in supplier spend from December, falling only 4 points (up 7% YoY) over January.
Wage spend tracks business spend on wages and salary payments.
Wage spend fell by 3 points in January, up 15% YoY. Hospitality saw an increase in wage costs over the holiday period, up 2 points in January for a YoY growth of 10%.
The Business Index is baselined to February 2021, using six months of average transactions as the denominator.
The Index is calculated by taking a representative sample of businesses from around Australia varied by size, industry and location and looking at their credit transactions across all account types (e.g. transaction, savings and credit card).