Small business trading conditions bounced back in the past three months as the economy picked up, a new survey shows.
The Australian Chamber of Commerce and Industry (ACCI) said businesses polled for its survey over the three months to November reported general business conditions, sales revenue, profits and investment were better than a year ago.
The small business barometer also gained ground over the last six months to its fourth-highest level on record.
But in a worrying sign for future inflation, the survey showed employment costs edged up in the three-month period to November as the jobless rate plunged to 14-year lows.
Both wages and non-wage labour costs rose and businesses expected the trend to continue over the next six months.
ACCI said the availability of qualified employees had also emerged as a stumbling block to growth for small, medium and large firms, ranking as the second-biggest hurdle in all three categories.
