Consumer confidence in South Australia has jumped by 7.3 points to 109.9 points, well above the 100 point benchmark, according to BankSA's latest State Monitor Survey.
The positive result shows South Australians remain optimistic about the future of the State's economy, despite international headwinds, with the number of consumers indicating a significant positive change in their financial position in the next 12 months, up 11 per cent.
In the same period, business confidence dropped slightly by 2 points, but remained elevated at 118.2 points.
It comes amid political uncertainty as Australians prepare to head to the polls, and international instability, on the back of the US's global tariffs.
According to BankSA, these external impacts to business confidence were offset by 3 key factors:
- Decisive leadership from the Malinauskas Government on the forced administration of Whyalla steelworks, and a relief package securing jobs for workers, and providing security for other businesses.
- The South Australian events season, bolstered by Liv Golf, Gather Round and Tour Down Under which resulted in hotel occupancy rates being among the highest ever recorded.
- Decreasing interest rates expected to take pressure off households and businesses, and stimulate growth in the local economy.
The number of businesses confident the climate for doing business in SA will improve over the next 12 months, grew by 21 per cent.
As put by Stephen Mullighan
These results from BankSA are another vote of confidence in the South Australian economy, as the State attracts the eyes of the nation through events like the Adelaide Fringe, Liv Golf and Gather Round.
It's positive to see Consumer Confidence growing and Business Confidence remaining above benchmark, despite international economic headwinds.
South Australia is the lowest taxing state on the mainland, and the best place in the nation to do business, according to the Business Council of Australia.
As put by BankSA General Manager Business, David Firth
There is a strong level of confidence in the South Australian economy with the State currently leading the nation on jobs growth, housing price growth and construction starts.
Some of the external factors identified as supporting optimism among consumers include South Australia's long-term outlook for the future, employment and income security, and their own household position, although they expressed concern about world affairs and wages relative to the cost of living.
