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Weak consumer spending rattles SA business

March 06, 2012

Business confidence has plummeted in South Australia during the quarter, according to the latest Sensis® Business Index, as has small and medium business support for the South Australian Government.

Report author Ms Christena Singh said business confidence in South Australia fell to the lowest level in the nation because of concerns about declining business and weak consumer spending.

“There are now almost the same proportions of businesses in South Australia which are worried about their business prospects as there are businesses that are confident,” Ms Singh explained.

Overall, four in 10 South Australian small businesses are worried about their business prospects for the year ahead, with four in 10 confident and the remainder neutral.

The Sensis® Business Index shows profitability and sales declined in South Australia during the quarter, although employment improved.

South Australian small businesses expect further softening in conditions during the coming quarter.

The popularity of the South Australian Government amongst small businesses has also been severely dented during the quarter. “Support for the policies of the South Australian Government recorded the largest fall of any state or territory during the quarter, with the government now the third least popular across the nation,” Ms Singh explained.

The key reasons South Australian small businesses said they disapproved of the state government’s policies were perceptions about:

  • Too much bureaucracy
  • Only concerned with big business
  • Too many taxes
  • Too much paperwork.

 Key SA Indicators for March 2012 Sensis® Business Index:

Indicator

March 2012

 

December 2011

 

Business Confidence

+5%

+11%

Sales

-12%

-2%

Employment

-5%

-6%

Wages and Salaries

+18%

+11%

Prices

+6%

+14%

Profitability

-23%

-15%

Capital expenditure

-8%

-7%

Approval of SA Government

-37%

-27%

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Information & Downloads

Sensis Business Index, March 2012

Contact:

Damian Glass
Sensis Corporate Affairs
0459 818 553