South Australian business confidence fell in the June quarter after three consecutive quarters of moderate growth, according to the latest survey by the South Australian Business Chamber in partnership with William Buck.
The Survey of Business Expectations, which has been monitoring the state’s business confidence for over 40 years, recorded a confidence level of 82.9 — a significant 8.1‑point drop from March.
This marks the eleventh consecutive quarter that South Australian confidence has remained below the neutral score of 100, a trend stretching back to December 2021.
National confidence also saw a decline, dropping by 7.2 points to 76.2 in the same period.
The survey revealed that 17.5% of respondents expect the South Australian economy to weaken in the next three months, a notable increase from 10.2% in March.
General business conditions also deteriorated, falling 4 points to 82.7, the lowest score since March 2023. This marks three consecutive quarters of declining business conditions, a metric that reflects how businesses have performed in recent months.
One business owner expressed concern over the challenges, stating, “The combination of the rising cost of doing business and the productivity limitations imposed by new industrial relations laws is like nothing I have seen before in over 40 years of business.”
South Australian businesses continue to grapple with high costs associated with wages, energy, rent, and other inputs, all while facing declining profitability.
Additionally, many are feeling overwhelmed by the increasing regulatory burden and the difficulty in finding skilled staff.
“Increasing government overreach is crippling small businesses,” said another respondent.
“We’re constantly required to obtain more licenses, comply with more regulations, and undergo more audits. It feels like we’re just throwing money at the government to get permission to keep doing the same business we’ve always done,” they added.
The June quarter survey also took a deep dive into productivity, a key concern for the South Australian Business Chamber.
The findings suggest that many businesses are so focused on staying afloat that they lack the resources to invest in productivity improvements. Over half (57.3%) of businesses reported no change in productivity over the past year, while 27.7% reported a decline.
Andrew Kay, CEO of the Chamber, said that profitability pressures have pushed productivity investments down the priority list for smaller businesses.
“For those reporting a decline in productivity, struggling to remain profitable was the main issue,” Kay explained.
“For businesses with stagnant productivity, the rising cost of doing business and broader economic factors were the key concerns.
“These results align with what we’re hearing from businesses across the state. While operators know they should be investing in areas like productivity gains, cybersecurity, or net-zero programs, tough times often narrow their focus to survival.”
In support of the Chamber’s advocacy efforts, respondents identified payroll tax reform as the top policy priority to improve productivity.
Read the full results of the June quarter Survey of Business Expectations here.
