The Australian Chamber of Commerce and Industry's (ACCI) latest survey shows it is not only small businesses who are experiencing increasingly difficult times - medium and large-sized firms are joining "this downwards rush".
ACCI chief executive, Mark Paterson, says business surveys are not supporting the view that all is well.
"The latest ACCI
Survey of Small Business is not alone in recording a very bleak period over the past three months," Paterson says.
"Fortunately the expectations data show some return to normality."
Paterson cautions that the changes of the past few months, including GST and its associated reforms, and the Olympics, make it difficult to be completely certain of any trends.
"One remains reluctant to jump to any conclusions based on these figures, but it would also be putting one's head in the sand to ignore the trends these figures display.
"The trends in general business conditions have been sharply downward for small business for much of the year, but in the latest quarter small business has been joined in this downwards rush by medium and large-sized firms as well."
Sales, profitability and investment data have all recorded falls in the past quarter, he says.
The figures on investment, including investment in plant and equipment, have not only deteriorated but also show a severe lowering of expectations.
"All this may be no more than a passing phase, but it would be very unwise to ignore what these figures are saying.
"Small business activity is falling and expectations for an improvement are minimal - these are trends no policy maker can safely ignore."
For more information from the survey, visit the ACCI's website at
www.acci.asn.au.