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One in Six Australian Businesses Saw Supply Chain Disruptions in May, ABS Data Shows

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One in six Australian businesses was experiencing supply chain disruptions in May, with about 72% reporting a negative impact from current fuel prices or availability, according to a Tuesday business conditions and sentiments report by the Australian Bureau of Statistics.

The bureau said 60% of businesses made changes to operations due to fuel prices or availability, with 48% absorbing cost increases and 11% increasing prices. Agriculture, forestry, and fishing recorded the highest proportion of businesses experiencing supply chain disruptions at 42%, followed by retail trade at 31%, the report added.

Industries reporting the largest negative impact from fuel prices included transport, postal and warehousing at 55% and agriculture, forestry and fishing at 51%, the report added.

Just over one in four businesses made changes to their workforce in response to fuel prices, with 15% reducing or suspending non-essential travel and 9% reducing the size of their workforce, while one in six businesses reported delaying or cancelling capital investment plans, the report added.

Over one third of businesses reported revenue had decreased over the previous four weeks, with more than one quarter expecting revenue to decrease over the next four weeks, and over one third expecting operating expenses to increase over the same period, it added.

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