Fifty seven per cent of Canberra businesses didn’t hit their targets over the last quarter, with the increased cost of doing business and reduced customer demand being the biggest issues, according to the latest Canberra Business Beat survey.

“Inflation and high interest rates are costing businesses more, while customers are spending less. This double whammy is impacting business performance,” says Greg Harford, Canberra Business Chamber CEO.

“Business remains gloomy although there is a slight improvement on the previous quarter. Thirty two per cent report feeling negative at the present time, a slight decrease from 36 per cent last month.

“The outlook for the next 12 months is improved though, with 34 per cent expecting their businesses to grow over the next year, compared to 24 per cent last quarter.  It is, however, a concern that nearly two-thirds of firms expect to remain static or shrink.

“No matter which party or parties form government after the election, businesses want the new territory executive to focus on reducing payroll tax and land tax imposts, reducing the cost of workers’ compensation insurance, improving small business access to procurement and reducing red tape and compliance costs.

“The latest Canberra Business Beat report also identifies that the costs of insurance are a significant issue, with big increases in premiums being reported.

“Artificial intelligence is also taking hold in business, with 62 per cent reporting that they are using AI tools at least some of the time.”