Despite feeling the brunt of rising costs of doing business, South Australian operators are quietly optimistic about the future, according to the latest findings from the South Australian Business Chamber and William Buck December Quarter Survey of Business Expectations, released today.
CEO of the South Australian Business Chamber, Andrew Kay says “Today’s results signal a gradually improving outlook for SA businesses, although our data indicates confidence levels still lag behind those of the same period last year.”
In the December quarter, South Australia’s business confidence rose by a modest 3.6 points to 87.5, compared to 91.2 in the corresponding survey period of 2022.
“Survey respondents overwhelmingly anticipate stable interest rates in the next quarter, and with indicators pointing towards lowering inflation, businesses are beginning to find some reassurance,” Mr Kay added.
General business conditions experienced a decline in the December quarter, falling to 90.7 points from 95.7 in the previous quarter.
“Businesses are feeling the impact of a slowing economy”, said Mr Kay. “December 2023 saw a decline in household spending, and Black Friday and Christmas trading did not meet the expectations of many businesses, particularly in the wholesale and retail sectors.”
Respondents to the Survey of Business Expectations, which has been tracking local business sentiment for 44 years, identified the cost of doing business, profitability, and staff and skills shortages as the top three challenges faced by businesses in the December quarter.
“Businesses are grappling with a host of challenges, and the landscape keeps evolving, particularly with the influx of new industrial relations laws”, said Mr Kay.
“Rising wages and soaring energy prices are impacting profitability, especially for smaller businesses hesitant to pass on increased costs to consumers.”
“Despite a slight decline in the number of businesses reporting difficulties in finding workers, recruitment remains a persistent issue,” Mr Kay added.
For a detailed breakdown of the December quarter results, visit sabusinesschamber.com.au/businessnow.
Media Contact
Anthony Caldwell
Manager — Marketing, Media, Communications
anthony.caldwell@sabusinesschamber.com.au
0421 508 075
