The NSW Business Chamber recently released the findings of their quarterly Business Conditions Survey, which also found that businesses in almost every region have been forced to shed staff because of the drought.

NSW Business Chamber manager Joe Townsend has called on the state and federal government to "get on with the delivery of infrastructure, particularly infrastructure promised to regional NSW."

There is however, some relief in the pipeline, with recent tax cuts and the lowest interest rates in history predicted to provide a boost, although much more is needed.

"The impact of the drought cannot be overstated. Our survey reveals that businesses have had to shed staff in most regions, and this would be concerning if it were to foreshadow a more significant deterioration in labour market conditions," he said.

"The fact that business confidence has deteriorated strengthens the case for the NSW Government to get on with the delivery of infrastructure."

The survey showed business confidence levels are at a 10-year low, with the New England North West the weakest of all regions, alongside Western and Orana, and the Southern Highlands.

"While conditions remain weak overall, there are also signs that recent declines in staffing, capital investment, and sales revenue are bottoming out," Mr Townsend said.

"The survey points to a tougher trading environment, but business owners are optimistic by nature and expect a turnaround over the next few months."

On Friday, economist Anthea Bill told the Hunter Research Foundation Centre that "all eyes are on the housing market in Sydney and Melbourne."

"The household sector has been relatively subdued post-GFC," she said.

"The fall in house prices is driving down consumer spending because so much of household wealth in Australia is tied up in housing".

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