FUEL prices and supply availability have negatively impacted 72 percent of Australian businesses, according to new data released by the Australian Bureau of Statistics (ABS).
According to Head of Business Statistics Tom Lay, the data from the Survey of Business Conditions and Sentiments helps the ABS better understand the economic impacts of the closure of the Strait of Hormuz on Australian businesses.
“Businesses across all industries were impacted by rising fuel costs from global volatility and ongoing supply chain disruptions,” Mr Lay said.
“One in six businesses experienced disruptions in their supply chain, with transport, logistics, agriculture and small businesses among those most affected.”
Over one third (36 percent) of businesses reported revenue had dropped over the past four weeks, while more than a quarter (27 percent) expect revenue to fall over the next four weeks.
Half of all businesses reported operating expenses had risen, with fuel prices and freight and delivery costs the most frequently reported reason.
About two thirds (60 percent) of businesses reported making changes to business operations because of fuel prices or availability in May.
This included absorbing cost increases (48 percent), increasing prices (11 percent), changing or delaying production targets, schedules or volumes (six percent) and implementing a fuel surcharge or levy (six percent).
Roughly one in four businesses (28 percent) made changes to their workforce in response to fuel prices or availability, including reducing or suspending non-essential travel activities to reduce fuel consumption (15 percent) and reducing the size of the current workforce (nine percent).
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