South Australia’s regional business and consumer confidence has shown significant improvement at the start of the year, according to the latest BankSA State Monitor survey.
Business confidence in these regions rose by seven points to 109.7, and consumer confidence increased by 1.3 points to 94.7, though it remains below the ideal 100-point benchmark.
The Southern region, which includes the South Coast, South East, Hills, and Murray Plains, experienced notable gains.
Business confidence here climbed by five points to 112.1, while consumer confidence soared by 13.5 points to 100.9. This growth in confidence is attributed to significant recent purchases, positive financial changes, and regional pride. The only decline was in their confidence in new technology.
Contrastingly, the West and North regions, encompassing Upper Spencer Gulf, Far North, and Eyre Peninsula, saw a decline. Business confidence fell by 10.8 points to 105.1, and consumer confidence dropped by 9.5 points to 77.
The Mid North and Riverland regions had a significant 20.6-point rise in business confidence to 108.9, despite a slight 3.6-point drop in consumer confidence to 99, the BankSA survey showed.
Les Ryan, BankSA agribusiness regional general manager, highlighted the role of external factors like China’s reduced barley tariffs and potential tariff lifts on wine and crayfish, which bolstered agricultural resilience.
Consumer confidence benefits from strong holiday periods but faces challenges like alcohol-related crime and funding cuts.
“The State Monitor survey shows that there are a number of external factors negatively influencing consumers across the state, including world affairs, petrol prices, cost of energy, and wages relative to the cost of living,” Ryan said.
“On the positive side, South Australians expressed optimism about the state’s long-term outlook, and employment and income security.”
Additionally, localised initiatives like improved phone coverage and support for wine growers have positively impacted regional confidence, the BankSA survey found.
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