Money
Issue No. 16 - April/May 2004
Business Confidence hits New High
BankSA Managing Director Mr Rob Chapman said the solid performance of the local economy was fuelling optimism among South Australian businesses.
“There is a common view among business operators that the economic fundamentals of the State are strong and this is likely to result in continuing high levels of demand for goods and services for the foreseeable future,’’ Mr Chapman said.
“Since late 2003, confidence in the business sector has risen with more firms creating additional employment, no real signs of an economic downturn and a greater likelihood of major business—related purchases in the coming months.
“Businesses are reporting continuing strong demand particularly within construction, manufacturing and agricultural industries with an expectation that the current demand or backlog of orders will continue well into 2004."
Mr Chapman said a confident business sector was an essential ingredient for a healthy and active economy.
According to BankSA State Monitor – an ongoing survey of South Australian business and consumers – 60 per cent of businesses are confident that the climate for doing business in South Australia will improve over the next 12 months. Thirty per cent were neutral. This optimism flowed through to the individual firms’ outlook with 64 per cent confident of an improvement in the performance of their own business over the next 12 months.
Encouragingly, 85 per cent of businesses said they feel positive...
