The latest BankSA State Monitor Survey reveals a significant surge in consumer confidence in South Australia, which has increased by 7.3 points to a new level of 109.9 points, well above the 100 point benchmark.
The positive result shows South Australians remain optimistic about the future of the State’s economy and also indicated a strong increase in optimism about personal financial positions, with an 11 percent increase in consumers expecting improvement over the next year.
However, the data shows a slight decline in business confidence, which dropped by 2 points to 118.2 points. Despite the decrease, this figure still represents a healthy confidence level in the local business environment. This mixed economic picture is set against political uncertainty caused by newly imposed US global tariffs.
Treasurer Stephen Mullighan commented on the survey’s findings, highlighting the stable business environment and growing consumer confidence.
“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,” he explained.
Assisting in offsetting the challenges are several key factors including the Whyalla steelworks, which ensured job preservation at the plant and stability for linked industries. The state’s vibrant events season also played a vital role, with major events such as Liv Golf, Gather Round, and Tour Down Under boosting hotel occupancy rates to among the highest ever recorded. The lowering of interest rates has also been marked as a potential relief for households and businesses, which could also contribute to the local economic growth.
According to BankSA General Manager Business David Firth, there is a strong confidence in the economic prospects of the state.
“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,” explained Firth.
He acknowledged external factors contributing to consumer optimism which include long-term prospects for the state’s future, job and income security, and personal financial situations. However, concerns about global affairs and wages in relation to living costs remain.
The survey also noted that an additional 21 percent of businesses in South Australia now feel more confident about the business climate improving in the next 12 months compared to previous measures.
WHAT: Consumer confidence growth
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