South Australian business confidence has displayed a slight rebound in the September quarter after a significant decline in June.
According to the latest the South Australian Business Chamber, William Buck Survey of Business Expectations released today, confidence levels rose to 83.9 points, bouncing back from 77.3 just three months earlier.
In June, the South Australian Business Chamber survey projected a further decline in business confidence to 68.4 points for the September quarter, reminiscent of challenging periods like the peak of COVID-19 and the Global Financial Crisis.
Andrew Kay, Chief Executive of the South Australian Business Chamber, suggested that interest rate stability since the last survey had contributed to the improved result.
“These are quite globally turbulent times. A brief period of certainty around local interest rates was welcomed by the business community,” said Mr Kay.
The confidence index, tracked by the South Australian Business Chamber for over 43 years, measures South Australian businesses’ expectations for the state and national economies over the next 12 months.
Additionally, general business conditions in South Australia showed an increase in September, with indices reflecting a 9.1‑point increase from 86.6 in June. “This result surpasses everyone’s expectations,” said Mr Kay. “Businesses anticipated a rise of 4.9 points last quarter, so this is promising news.”
This increase stands in stark contrast to the June quarter conditions, which saw a significant 19.3‑point decline. Mr Kay highlighted the volatility businesses are navigating, emphasising the challenge it poses for long-term strategic planning and underscoring the necessity for adaptability and agility among operators.
The quarterly survey, which is essential for informing the South Australian Business Chamber’s advocacy, addressed the concerns keeping business owners awake at night. At the peak of these concerns was the cost of doing business, with nearly two-thirds of respondents worried about costs and profitability.
“Rising business costs, particularly materials and overheads, have surged to multi-decade highs,” said Mr Kay.
“Increases in energy prices, insurance premiums and borrowing costs have been higher than expected. The Reserve Bank’s latest interest rate rise will further challenge business owners, especially in discretionary sectors like retail and hospitality. Many will be hoping for a bumper festive season to pull them through.”
Beyond cost concerns, the survey highlighted the ongoing need for skilled labour and an emerging issue around workplace culture, wellbeing, and mental health issues, with 23% reporting concerns during the quarter.
For a comprehensive analysis of the South Australian Business Chamber, William Buck September 2023 quarter Survey of Business Expectations, please visit business-sa.com
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