Australian SMEs see 2015 as "patchy and stuttering": report

The mood of Australian small and medium sized enterprises (SME) is subdued and a recovery in 2015 looks patchy and stuttering, according to a new survey.

The quarterly Sensis Business Index (SBI) for December showed a lack of improvement on most measures while performance and expectations vary considerably across metro and regional areas, states and industries.

The Sensis report surveyed 1,000 metropolitan and regional SMEs from areas such as manufacturing, wholesale and retail trade, hospitality, construction, communication, property, business services, health, community services, cultural and recreational industries.

The key findings of the December SBI report showed that 51 percent of small business owners are feeling confident about the year ahead, down from 53 percent in September.

A quarter are worried about their prospects for the year ahead with subdued consumer spending and sales the major causes of concern, it said.

SME's prognosis of the economy a year from now is six points lower than the previous quarter and regional SMEs are the main source of declining confidence.

Sensis chief executive John Allan said there was a great deal of evidence that suggests the past year has been a mixed one for SMEs.

"SMEs comprise 99 percent of all businesses operating in Australia, so their experiences and outlook are a true window into the health of the economy," he said in a statement.

"This year is shaping up to be a year that sees a patchy economic recovery with much variation across all states and between metro and regional areas. What we see in the report is evidence that the local environment plays a big role in confidence for SMEs." Endi