NSW suffers economic "deep funk"

An interest rate rise by the Reserve Bank of Australia (RBA) could be disastrous to the wider economy of NSW, according to a recent survey.

A quarterly business conditions survey conducted by the Commonwealth Bank and the NSW Business Chamber shows that nearly 50 per cent of firms covered have experienced a dip in profits since the end of March.

NSW would be adversely affected by a rise in the cash rate, according to the chief executive of the chamber Stephen Cartwright, with many business already reportedly on shaky ground.

Mr Cartwright said business in NSW were suffering from a "deep funk", with negative economic indicators present in all areas, including sales revenue, profits and export levels.

According to the survey, the June quarter was the worst experienced by businesses in NSW since 2009.

"My advice to the RBA board is take the lift down to Martin Place and go talk to the shopkeepers," asserted Mr Cartwright.

Changes to the cash rate could have a serious impact on consumer confidence in the real estate market - an outcome that professionals with property management training may recognise.

The RBA is due to announce its decision on interest rates tomorrow (August 2).