SA businesses in ‘unusual’ March slump
A series of major events has failed to excite the state’s businesses, which say they’re experiencing conditions similar to the peak of COVID according to a new survey.
A new South Australian Business Chamber and William Buck survey found the state’s business are in an uncharacteristic slump, with confidence at COVID-era levels for the March quarter.
The festive mood created by LIV Golf, the Adelaide Fringe and Gather Round was not enough to lift the spirits of businesses according to South Australian Business Chamber CEO Andrew Kay.
“We typically see an uplift in sentiment each year at this time driven by the benefits our peak major events season brings,” he said.
“It seems that other factors are at play and have influenced the survey.
“The global trade turbulence following President Trump’s tariff announcements, and a federal budget and election campaign that seemed to bypass business has created a sense of uncertainty and disappointment.”
Kay said the result was unusual, but said businesses were calling for less red tape.
“The other force that can’t be ignored is the impact of government policies, legislation and compliance – commonly referred to as red tape,” he said.
“This is now the second biggest issue for business after costs and has consistently climbed up the ranks for the past few surveys.”
The index tracking general business conditions, which has dropped in five of the last six quarters, declined by 12.1 points to 77.2 points in March; the weakest business sentiment since June 2020.
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Further, South Australian business confidence fell 13.9 points to 80 points – the steepest decline in confidence and the lowest score since June 2023.
Just 13.7 per cent of respondents said the state economy would either be stronger or somewhat stronger in the next 12 months.
“Clearly, it is tough going for many South Australian businesses,” Kay said.
“A single interest rate cut has yet to move the dial in terms of consumer demand, with more stimulus required.
“While cost pressure remains in place and international markets are unsteady, the business sector needs some good news on the fiscal front.”
