Shift Business Index

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June 2023

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

BUSINESS LIQUIDITY
0
Last month: 65
YoY: 84
BUSINESS SALES
0
Last month: 106
YoY: 104
SUPPLIER SPEND
0
Last month: 115
YoY: 113
WAGE SPEND
0
Last month: 120
YoY: 109
Table of Contents





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

  • 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).