Shift Business Index
June 2023
Shift uses transaction data from a representative sample of business in Australia to gain insights into their financial and operational performance.
YoY: 84
YoY: 104
YoY: 113
YoY: 109
Key Takeaways
- Sales retreated over June, and this decline was matched by similar falls on the Supplier and wage spend indexes. Liquidity fell by 2 points (-3.08% MoM, -25% YoY).
- In comparison, the Professional services sector advanced on both the Sales and Liquidity indexes over June. Liquidity grew by 1 point (+1.1% MoM, + 9.5% YoY), and Sales were up by 11 points (+8.6% MoM, + 20% YoY).
- Both the Retail Trade and Hospitality industries saw a decline in Sales over June.
Liquidity Index
The Liquidity index is calculated by measuring changes in business liquidity to garner insights into the overall level of business health. The Business Liquidity Index fell by two points in June (-3.08% MoM, -25% YoY).
- A decline in available cash balances was felt across many industries over June,
- A similar fall was also seen in the Retail Trade industry, which was down 6 points (-8.87% MoM, -26.6% YoY).
- Liquidity within the Construction Industry remained flat over June (-0% MoM, -18% YoY).
Key Measures
Sales
The Sales index tracks changes in sales to measure business performance. Over June, sales retreated by 4 points (-3.77% MoM, -1.92% YoY).
- Sales within the Hospitality and Retail sectors both eased over June. Hospitality fell 9 points (-7.4% MoM, +3.7% YoY), and Retail Trade declined by 7 points (-7.4% MoM, -6.4% YoY).
- Professional Services sales grew over June by 11 points (+8.6% MoM, +20% YoY).
- Within the Construction Industry, sales fell by 3 points (-2.9% MoM, -5.0% YoY).
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 fell by 6 points over June (-5.2% MoM, +2.7% YoY).
Key Measures - Business Costs
(Wage Spend)
Wage spend tracks business spend on wages and salary payments. The Wage spend index fell by 2 points in June (-1.7% MoM, +8.26% 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).