Media Release

Confidence amongst South Australian consumers and businesses remains stable buoyed by increased perceptions of business activity and employment security.

However, forward-looking measures highlight some caution ahead for both consumers and businesses.

The BankSA State Monitor survey shows business confidence has increased by 2.8 points since February to 121.4 points and consumer confidence increased 4.4 points to 112.9.

BankSA State General Manager Business, David Firth, said the most significant factor driving this increase was the perception that small business activity had increased.

“Consumers recorded a 36 per cent positive shift in their perception of business activity, and businesses a 15 per cent increase over the past few months.

“The removal of previous mask and capacity restrictions, and a return to ‘normal’ life, has contributed to increased activity and confidence in this survey.”

Other factors supporting confidence levels included businesses creating additional employment, greater job and income security for workers, the ability to make a major purchase, and more certainty following the state and federal elections.

“While overall confidence increased slightly, it remains well below the levels seen in early to mid 2021 and we remain in a challenging economic environment,” said Mr Firth.

When asked about changes in their specific financial circumstances in the past 12 months, 72 per cent of consumers cited an increase in cost-of-living pressures, while 51 per cent of businesses have also experienced increased costs.

However, both consumers and businesses have indicated a net lowering of debt levels.

“Increasing concerns about individual cost of living and financial pressures appear to have been offset by a greater level of confidence as we have moved beyond the previous pandemic restrictions, and the associated perception that business activity has significantly picked up in this survey period.”

The State Monitor survey showed that there was a decrease in some forward-looking measures. This included the future climate for spending, with a 22 per cent decrease in confidence for consumer spending, and a 16 per cent decrease in confidence that the climate for doing business will improve further over the next 12 months.

Consumers and businesses were also less confident that their own financial position will improve over the next 12 months, recording falls of 1 per cent and 8 per cent respectively.

However, businesses’ concerns about labour shortages have eased slightly this survey. This was supported by an eight per cent increase in businesses who hired additional employees in the past three months and a nine per cent increase in businesses with hiring intentions for the coming months.

Other key findings included:

• Most confident consumer segment was 25-34 year olds.
• Confidence amongst blue collar workers increased significantly and is above the longterm average.
• Most confident industries were construction, community services and finance.
• Largest declines in confidence were in transport, manufacturing and agriculture industries.

Regional confidence

Consumer confidence in South Australia’s rural regions mirrored the statewide results with a 3.4 per cent increase in June to 114.4 points.

“Consumer confidence by region was mixed, with the Hills and Murray Plains, Yorke Peninsula, Barossa and Mid North recording increased confidence, while Upper Spence Gulf, South Coast, South East and Eyre Peninsula decreased in confidence,” Mr Firth said.

Regional business confidence decreased by 6.6 per cent to 104.0 points this survey.

“The drop in business confidence was more pronounced in the South Coast and South East regions, while the Upper Spencer Gulf and Riverland recorded increased business confidence.”