South Australian businesses are experiencing conditions similar to the peak of the COVID pandemic, according to the latest South Australian Business Chamber and William Buck Survey of Business Expectations, released today.
The March quarter survey results for business confidence and business conditions defied the festive mood generated by major events such as LIV Golf, the Adelaide Festival, Fringe, and AFL Gather Round.
CEO of the South Australian Business Chamber, Andrew Kay, said this result was unusual for the March quarter. “We typically see an uplift in sentiment each year at this time, driven by the benefits our peak major events season brings. It seems that other factors are at play and have influenced the survey.”
“The global trade turbulence following President Trump’s tariff announcements, and a federal budget and election campaign that seemed to bypass business, have created a sense of uncertainty and disappointment,” said Mr Kay.
“The other force that can’t be ignored is the impact of government policies, legislation, and compliance, commonly referred to as red tape. This is now the second biggest issue for business after costs and has consistently climbed up the ranks for the past few surveys.”
General Business Conditions declined by 12.1 points to 77.2. This index has dropped in five of the last six quarters, with 77.2 points marking the weakest business sentiment since June 2020, in the depths of the COVID pandemic.
South Australian Business Confidence fell 13.9 points in the March quarter to 80 points, the steepest decline in confidence and the lowest score since June 2023.
Just 13.7% of respondents believe that the SA economy will be either stronger or somewhat stronger in the next 12 months.
“Clearly, it is tough going for many South Australian businesses,” said Mr. Kay. “A single interest rate cut has yet to move the dial in terms of consumer demand, with more stimulus required. While cost pressures remain in place and international markets are unsteady, the business sector needs some good news on the fiscal front.”
For a detailed breakdown of the March quarter results, including commentary from businesses, visit here
For enquiries regarding this release, contact Andrew Kay 0439009590, akay@sabusinesschamber.com.au
