5 February 2019: The December Quarter 2018 Sensis Business Index, released today, has revealed that confidence levels among small and medium businesses (SMBs) in South Australia (SA) have reached an eight year high.
The report, which measures SMB activity, expectations and confidence over a three-month period, has found that the net confidence balance among SMBs in SA increased 23 points to +51, the highest balance seen across the state since March 2010 (+52).
Sensis Chief Executive Officer, John Allan, said: “Small and medium businesses in the South reported a strong December 2018 quarter, particularly across sales (+15), wages (+15) and prices (+12), so a big lift in confidence levels is unsurprising.”
“In November of last year, a study by Roy Morgan* tipped 2018 Christmas spending in South Australia to increase by 3.1% on 2017. The results of the December Quarter Sensis Business Index, particularly through businesses claiming confidence due to healthy sales, indicated a strong start to the holiday period,” Mr Allan said.
Despite witnessing a fall of one point from the record level hit in the July Quarter (+17 compared with +18), the SA Government remains the second most popular of all states and territories, sitting behind Tasmania at +29.
Reducing payroll tax, good policies and business management training schemes were the top factors mentioned by SMBs in support of the SA Government, while those with a less optimistic view referenced too much focus on big business and not understanding the needs of small businesses as the top criticisms.
“While SMB support for the SA Government rose significantly through early 2018, it has now flattened despite confidence rising,” Mr Allan added.
Other interesting findings from the report:
· Support for the Federal Government has also increased among SMBs in South Australia, lifting four points to a net balance of +19.
· Among healthy sales, the other major factors driving overall confidence are being an established solid business, having specific business strengths. Of those lacking confidence, the primary drivers were decreasing sales.
