South Australian business confidence continues to climb despite losses associated with the Parafield Cluster shutdown and prolonged restrictions into early December.
Business confidence jumped to 108.3 points, up 13 points from the September quarter of the Business SA-William Buck Survey of Business Expectations.
The December quarter index is 20 per cent above the 10-year average, signalling a brighter year ahead, as the State approaches the 12-month anniversary of the COVID-19 pandemic.
“The confidence wave in South Australia continues to build despite ongoing un-certainty around COVID-19,” said Business SA CEO, Martin Haese.
“To record a 13-point jump in confidence in a quarter marred by a hard lockdown and increased restrictions on businesses for much of December, these results are a testament to the resilience of South Australian business owners.
“South Australian consumers are also showing great confidence and supporting their local businesses with almost 1 in 3 businesses forecasting trade to be better than their pre-COVID levels through the March quarter.”
“Once again, the survey has highlighted that a group of SA businesses still remain materially impacted by ongoing COVID-19 restrictions with 15 per cent of respondents reporting their turnover remains down by more than 50 per cent.”
According to the Business SA – William Buck Survey of Business Expectations, the State’s longest running survey of business owners, just 30 per cent of SA businesses qualified for JobKeeper for the March quarter 2021 (down from 60 per cent for JobKeeper 1.0).
However, 68 per cent of SA businesses agreed the wage subsidy scheme should continue past its 28 March cut-off date for those industries most impacted by ongoing COVID-19 restrictions such as those relying on international tourism and events.
“Business SA has been a consistent advocate for a targeted and more nuanced support scheme for South Australian businesses still hit hard by COIVD-19 and the December quarter only reinforces that further support is needed,” said Mr Haese.
“Business SA encourages the State and Federal Government to consider all options available to continue some form of safety net for business owners and their employees whose livelihoods remain under threat.”
William Buck Managing Director, Jamie McKeough, said the various Government stimulus packages underlined the healthy amount of optimism from the SA business community.
“It was encouraging to see a third of businesses report that 2020 was their best ever financial performance or the best in five years,” he said.
“While around 34 per cent believe their business is operating better since the onset of the pandemic due to improved systems, greater efficiency, and elimination of waste.”
View the Business SA – William Buck Survey of Business Expectations results here. To arrange an interview please contact Anthony Caldwell on 0421 508 075. 23 February 2021