Business Now - September Quarter 2020

What is the survey about?

The Survey of Business Expectations is a quarterly survey which highlights the South Australian business community’s view of current and future economic conditions. In partnership with advisory firm William Buck, the results are analysed, deciphered and published in our quarterly joint publication, Business Now.. These results inform Business SA policy and advocacy work and provide a robust indicator to government and other stakeholders of the business environment in South Australia. You can view all the past results here.

September Quarter Results

The September quarter Business SA – William Buck Survey of Business Expectations has seen business confidence soar higher than expected, recording the biggest jump in 20 years of the State’s longest running survey of business owners.
 
Despite ongoing uncertainty around the COVID-19 pandemic, business confidence jumped 28.3 points from the June quarter to 95.3 points.
 
In a sign majority of businesses are returning to “normal” trade levels, the index is back to its highest level since March 2019. Business Conditions was also stronger than expected in the September quarter up 28.7 points and is forecast to rise even further in the next quarter to nearly 100.
 
While the September quarter results are promising, it is clear South Australia’s economy remains split in two: those businesses hardest hit by ongoing restrictions and the rest.
 
According to the survey, 37 per cent of businesses in the hardest hit sectors forecast revenue to still be lower than 50 per cent by the end of December, compared to 13 per cent of businesses not in the those hardest hit sectors.

Insights: Jamie McKeough, Managing Director, William Buck

William Buck Managing Director, Jamie McKeough, said JobKeeper was a key reason behind the surge in confidence.
 
“With JobKeeper 2.0 averting the dreaded cliff, businesses have time to plan ahead,” he said.
 
“While 66 per cent of respondents said they received JobKeeper 1.0, 35 per cent said they qualified to receive the revised payment from October to December and 30 per cent were expecting to receive the wage subsidy from January to March 2021.
 
“The Federal Budget, which continued the Government’s historic and unprecedented spending on not only job subsidies but also tax cuts, business investment incentives through depreciation and new infrastructure projects is also no doubt helping business confidence.”

 

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