CONSUMERS living in rural SA have experienced a lift in confidence in the past three months, but rural business owners have had a drop, according to the latest BankSA State Monitor.
Conducted by an independent research firm, the latest BankSA State Monitor reveals consumer confidence in rural SA has jumped 7.3 points since the last survey in July, from 102.6 index points to 109.9.
The rise is attributed to renewed positivity among country consumers that their own financial position will improve in the next 12 months, as well as greater optimism about the future climate for consumer spending.
Significantly, there has also been an increase in the number of rural consumers who have made a major purchase in the past three months, such as real estate, cars, whitegoods and holiday travel.
But increased positivity among rural consumers has been offset by an 8-point fall in confidence among business owners and managers, dropping from 115.9 index points in July to 107.9.
Specifically, rural business owners reported increased worry about a downturn in turnover, while fewer rural businesses reported putting on new jobs in the past three months.
The Mid North and Riverland region, which also includes the Barossa and Yorke Peninsula, reported a 6.9-point increase in consumer confidence, up from 97.7 index points to 104.6, to rise back above the 100-point baseline, but remaining the least confident rural region in the state.
Business confidence in the Mid North and Riverland region fell 12.3 points, from 115.7 to 103.4.
The Southern region, which includes the South East, Adelaide Hills and Murray Plains had a 12.8 point lift from 98.6 to 111.4 for consumer confidence, while business confidence was down from 118 to 114.9.
West and North – including the Upper Spencer Gulf, Far North and Eyre Peninsula – went against the trend with a decrease in consumer confidence – down 2.9 points from 119.0 to 116.1, while business confidence was also down 10.3 points from 112.7 to 102.4.
BankSA chief executive Nick Reade said the state monitor results provide a mixed bag for the regions.
“It’s great to see increased confidence among rural consumers, but it’s disappointing that rural business confidence has dipped,” said Mr Reade.
“Importantly though, both now sit comfortably above the 100-point baseline and have shown an overall upward trend this year which is a good lead into 2019.
“In fact, consumer confidence in all three rural regions is back above 100 index points for the first time since February 2014, while business confidence – despite dropping in this latest survey – remains solid having lagged in recent years.”
Overall business confidence across SA held firm at an eight-year high at 119.0 points, while overall consumer confidence across decreased slightly from the four-year high posted in July – down 3.1 points from 109.4 to 106.3.
Rural businesses have had lower confidence than metropolitan businesses consistently for the past five surveys.