Shift Business Index
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- The Shift Business Index is calculated by measuring changes in a business liquidity to garner insights into the overall level of business health. The Business Index is down 2 points in June, 8 points YoY.
- Businesses within the Retail Trade sector suffered the largest fall in liquidity, falling 7 points, down 10 points year on year.
- On the other end of the spectrum, the Construction Industry continues to grow its liquidity, off the back off two consecutive months with rising sales.
Key Measures
Sales
- Strong sales performance continues across June, with the Index rising 3 points (up 9 points YoY) last month.
- Across sectors, the Transport and Construction industries saw the strongest sales performance, while Hospitality fell 1 point over June.
- Over June 2022, sales grew by 3 points, up 9 points YoY. Sales were led by the Transport and Construction sectors, while Hospitality fell 1 point.
Key Measures – Business Costs
(Supplier Spend)
- Supplier spend tracks business costs and expenditures on goods and services, material and equipment, utilities, fuel and insurance.
- Supplier spend growth over June was led by the Construction and Transport sectors (up 2 points and 1 point respectively) as rising material and fuel costs continue to take effect.
- Over the month of June, businesses directed on average 53% of their incoming cash flow to Supplier costs.
Key Measures - Business Costs
(Wage Spend)
- Wages spend tracks business spend on wage and salary payments.
- Businesses continue to spend more on wages over 2022, with the Wage Index rising to 109, up 1 point in June and 8 points YoY.
- This growth is most pronounced in the Hospitality industry, rising to 112 points, up 11 points YoY.
About the data
Shift Business Index
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).