ABS data shows fall in May business turnover

It’s been a difficult few months for business in Australia and there’s no end in sight, with turnover down for the month of May.

Elevated interest rates continue to hobble businesses with the latest turnover figures showing a 0.6 per cent decline for the month of May.

The Australian Bureau of Statistics reported a 0.6 per cent fall for its 13-industry aggregate measure, with administrative and support services recording the largest drop with a 2.3 per cent decline.

Wholesale trade fell 2.1 per cent and construction slipped 1.1 per cent.

ABS head of business statistics Robert Ewing said the May numbers extended a stagnant trend in turnover.

“The pattern we have seen in recent months continues as the business turnover 13-industry aggregate remained flat in May,” he said.

Business turnover has been flat for the past few months. Picture: NewsWire / David Crosling

“In seasonally adjusted terms, most industries either fell or were flat which resulted in the 13-industry aggregate falling 0.6 per cent.”

In trend terms, turnover rose 0.2 per cent across the month.

Turnover refers to the total income generated by a business.

The indicator is drawn from Australian Taxation Office business activity statement data covering business with GST annual turnover of $20m or more.

It also covers a proportion of smaller businesses that report on a voluntary basis.

Arts and recreation businesses delivered some brighter news, with the industry lifting 2.8 per cent in May.

Media and telecommunications also rose 2.6 per cent.

Turnover in construction slipped 1.1 per cent in May 2024, according to the latest figures from the ABS. Picture: NewsWire / Sharon Smith

The ABS credits the publishing subdivision for the growth as demand for generative artificial intelligence continues to leap higher.

While aggregate turnover fell in May, the figures are still up from May 2023, with 11 of 13 industries booking rises across the year.

Construction booked the biggest gain, with a 6.4 per cent increase in turnover.

Mining businesses are struggling, with turnover falling 5.5 per cent from May 2023-2024.

But the sector eked out a small 0.1 per cent gain in May.

May’s numbers extend the country’s flatlining turnover, with the 13-industry aggregate only slightly up or down each month since September 2022.

The ABS business turnover index was 130.9 points in September 2022 and now sits at 133.1.