There are a number of factors behind this result, including the ongoing impact of the drought, slow retail sales and a drop-off in previously high construction activity.

Drought conditions continue to affect businesses in regional NSW, not just in the agricultural sector but across the business spectrum as spending restrictions in rural communities bite. Any economic stimulus, such as the Upper Hunter roads and airport funding announced by the state government last week, is a welcome boost for those areas.

The recent Bush Summit in Dubbo was a rare chance to train the focus of decision-makers across all levels of government on the plight of drought-affected communities.

On a brighter note, the Business Conditions Survey showed optimism about an upturn in business conditions looking forward. Interest rate reductions, tax cuts and deeming rate changes will all result in more money going into people's pockets, so it is hoped the 'pay packet effect' will lift spirits and bottom lines.

The Hunter Business Chamber is pleased to be partnering with the Hunter Research Foundation Centre to bring the Minister for Planning and Public Spaces, Rob Stokes, to the region for a dinner event at NEX on August 14.

Mr Stokes's broad portfolio responsibilities have significant potential to influence the economic development and diversification of our region, so it will be very interesting to hear his thoughts on the future of the Hunter. Tickets: events.humanitix.com.au/stokes-dinner-14-aug-2019