Business confidence in South Australia has fallen to its lowest level since the peak of the pandemic, with new survey results revealing mounting pressure on businesses from rising costs, fuel disruption, and weakened trading conditions.
The latest South Australian Business Chamber/William Buck Survey of Business Expectations shows confidence in both the South Australian and national economies has plunged to levels not seen since the pandemic, while business profitability has fallen to a 20-year low.
General business conditions and sales are now at their weakest point in six years, and businesses expect conditions to deteriorate even further next quarter.
South Australian Business Chamber CEO Andrew Kay said the results paint a concerning picture.
“South Australian businesses are being squeezed from every direction — fuel costs, freight disruption, inflation, and softening demand.”
“They are adapting where they can, but they are doing so by absorbing higher costs, delaying investment, and carrying more risk. That is not sustainable long term,” he said.
The survey found freight and supply chain concerns have surged sharply during the quarter, driven by rising costs and growing instability linked to conflict in the Middle East.
For many businesses, the fuel crisis is driving up transport and supplier costs, disrupting deliveries and staff movement, and undermining the reliability of getting goods to market.
“Fuel-related issues are now affecting the broader business community and placing further stress on already tight margins,” Kay said. “Confidence is fragile, and profitability is under severe pressure.”
Kay said many businesses are caught between absorbing rising costs or passing them on to customers who are already under pressure themselves.
“What we’re seeing is businesses reluctantly absorbing more of these costs because they know their customers are doing it tough too,” he said. “Even where prices are increasing, many businesses are only recovering a fraction of the added cost.”
Kay said the results should serve as a warning to governments as broader tax and structural reforms are considered following the recent Federal Budget.
“Government policy settings should be helping relieve the pressure businesses are experiencing, not adding to it.”
For a detailed breakdown of the March 2026 quarter results, including commentary from businesses, visit https://sabusinesschamber.com.au/SOBE
Media Contact — Andrew Kay | akay@sabusinesschamber.com.au | 0439 009 590
