Tuesday, 12 May 2020
Business confidence in South Australia has plummeted to a record low, with the March quarter the South Australian Business Chamber – William Buck Survey of Business Expectations showing a catastrophic decline in confidence and conditions to the lowest level in the 40 year history of the State’s longest running survey of business owners.
The economic impact of COVID-19 was significant in the quarter with business confidence dropping 44.1 points from 85.1 to 41. Conditions also nose-dived deep into negative territory, dropping 30.5 points to 66.8 points.
The South Australian Business Chamber CEO, Martin Haese, said the March quarter of the survey would go down in history as the worst ever.
“While we expected confidence to be at a record low, the economic impact of COVID-19 has certainly hit home in the March quarter the South Australian Business Chamber – William Buck Survey of Business Expectations,” Mr Haese said.
“For more than 70 per cent of business to report a 30 per cent or more drop in revenue for the quarter is unprecedented in modern times.
“The impact is widespread across all industry sectors, but the most damage no doubt has been in the accommodation, hospitality and retail sectors.
“Businesses across the board felt anxiety about the immediate months ahead with 36 per cent casting doubt over whether they could survive another three months of restrictions. In the accommodation, hospitality and retail sectors, this was even higher with 52 per cent saying it was unlikely they would survive another three months of compromised trading.
“There is no doubt this dramatic fall in confidence is catastrophic for the SA economy.
“However, it could have been a lot worse with a strong sense of businesses getting good support from both the State and Federal Government as well as the banks. JobKeeper in particular proved to be a Hail Mary with one in two businesses benefiting from the scheme, while the State Government’s $10,000 emergency cash grants also provided much needed relief.
“These results only underscore the vital importance of continuing the JobKeeper program through to August, and possibly beyond.”
William Buck Managing Director Jamie McKeough said there was a shining light in the COVID-19 storm.
“Despite the clear fall in confidence, what the survey also showed is South Australia’s ability to rapidly adapt to adversity and not throw in the towel,” he said.
“More than 83 per cent of businesses indicated they had been able to adjust their operations in some way to continue operating through the crisis, while a quarter introduced a new specific service or product in this time.
“It will be a long march to the end of this economic crisis, and we have only just begun.”
Read the Survey of Business Expectations ‘Business Now’ Report
