The Pialligo business employs 16 staff, five part time. It faced a downturn of demand in May because of the cyclical nature of demand for landscaping.

Company director Vicki Berry said, ''When it's really cold, people stop thinking about their gardens, they just hibernate.

''As soon as the sun comes out, they brighten up again and the calls start flooding in. That's exactly what happened.''

But not all ACT small to medium- sized businesses are faring so well.

''If you talk to a lot of businesses around the place, what I'm hearing is they're having to put off staff, their turnover has reduced, inquiries have reduced and that certainly does seem to be the case across the board.''

However, Ms Berry remains confident in her business.

''I'm very optimistic [but] I don't think it's a good time for many businesses, it's tough in retail, construction, all over, really, in Canberra.''

ACT Chamber of Commerce chief executive Chris Peters said consumer demand and business confidence had gone quiet in Canberra for reasons such as national uncertainty in the financial markets.

Mr Peters said, ''I'm seeing reports of businesses having gone flat at best and having declined in some cases, but businesses we have been surveying have been holding on to their staff because there is such a difficult shortage.

''Shedding staff would definitely be the next step if the economy doesn't turn around.''

These comments coincide with the issuing of information service provider Sensis's August Business Index. The survey, taken quarterly, tracks confidence and behaviour of Australia's small and medium enterprises. The most recent survey had 1800 respondents and a sample size for the ACT of 150 businesses, which, according to Sensis, is a statistically significant number.

From interviews between July 31 and August 22, the index found that ACT businesses were shedding staff and slashing costs to cope with weak consumer demand.