CANBERRA, May 26 — Australia’s businesses are facing pressure from rising fuel costs and supply disruptions, with 72 percent reporting negative impacts, official data showed on Tuesday.
The data from the survey of business conditions and sentiments highlights the economic impacts of the closure of the Strait of Hormuz, a key oil transit route, on Australian businesses, said Tom Lay, head of business statistics at the Australian Bureau of Statistics (ABS).
“Businesses across all industries were impacted by rising fuel costs from global volatility and ongoing supply chain disruptions,” Lay said, adding one in six businesses reported supply chain interruptions, particularly in transport, logistics, agriculture and small businesses.
About 36 percent said revenue had dropped over the past four weeks, while 27 percent expect further declines in the coming month, said an ABS statement.
Half of businesses reported rising operating expenses, driven mainly by higher fuel, freight and delivery costs, the statement said.
About 60 percent of firms adjusted operations due to fuel costs or supply in May, it said, adding that nearly half absorbed costs, while others raised prices, delayed production, or added fuel surcharges.
About 28 percent of businesses made changes to their workforce, including cutting non-essential travel and reducing staff, the statistics showed. (Namibia Daily News/Xinhua)
