The Australian Chamber of Commerce and Industry (ACCI) Small Business Survey shows a continued deterioration in Small Business Conditions over the December quarter with this index falling to 34.2 - its lowest level since this Survey began in December 1996 and almost 20 points below its five year average of 53.3.

Small businesses expect their business conditions to remain negative in the first three months of 2009.

The Survey also found that:

Small business expects a further weakening in Australia's rate of economic growth over the next twelve months. The Expected Economic Growth index is also at its historic low levels and more than 20 points below its five year average;

While the indexes remain contractionary, small business expects the level of contraction in Sales Revenue, Profit Growth and Employment to stabilise and in some cases not be as extensive over the next three months;

Selling Prices are expected to fall further over the next quarter;

Wage Growth and Non-Wage Labour Costs moderated and fell below their five year average. However, these costs are still growing and continue to maintain pressure on small business profitability; and

Small business expects business investment to deteriorate further over the first three months of 2009.

Following weaker labour market conditions, the Availability of Suitably Qualified Employees no longer ranked within the top five constraints on investment.

Moreover, the Resistance to Workplace Change from Unions has moved to fifth place on the investment constraints currently faced by large enterprises,indicating large businesses are worrying about uncertainty in light of proposed changes to industrial relations laws and the current economic turbulence.