Mixed results in rural confidence survey

The monitor, which surveys 300 rural businesses and 300 consumers, found statewide regional consumer confidence is up 3.2 points since February, from 95.7 to 98.9 - almost at the 100-point baseline.

Reasons attributed to this lift in confidence was reduced concern about unemployment or losing their job.

Despite the rise in regional consumer confidence, rural businesses reported a dip in confidence - down 3.7 points between February and July, from 112.0 to 108.3.

The reduced regional business confidence is largely attributed to concerns among owners and managers about the direction of small business activity, as well as increased worry about the performance of their own business over the next 12 months.

Bucking the trend was the Mid North and Riverland region, which also includes the Barossa and Yorke Peninsula, where business confidence rose 2.5 points to 103.8.

While this was the only rural region to record an increase, it remains the least confident region across rural SA.

This region also reported an 8.8-point decrease in consumer confidence, to 92.0, falling from the most confident to the least confident rural region in the state.

West and North - incorporating the Upper Spencer Gulf, Far North and Eyre Peninsula, recorded a 0.3 decreased in consumer confidence to 94.9 and a decrease in business confidence of 4.5 points to 106.3.

This is its fifth consecutive survey of retaining business confidence above the 100-point baseline.

Southern -South Coast, South East, Hills and Murray Plains - increased in consumer confidence 16.8 points to 108.4, rebounding to the most confident rural region for the first time in two years, while business confidence was down 8.5 points to 112.1.

It remains the most confident rural region in the state for the seventh consecutive survey.

BankSA chief executive Nick Reade said while it was disappointing that business confidence overall in regional SA did not rise in line with consumer confidence, there were positive signs for the future.

"It's good to see business confidence continues to remain at a relatively high level in the regions, despite increased concern that there will not be significant improvement in the performance of their businesses in the near term," he said.

"We've also seen a small but important lift in consumer confidence in regional SA, which will be welcome news to local businesses, particularly in the retail sector.

"Since the federal election, the political and economic climate has settled down, allowing consumers to plan ahead with a little more certainty, in addition to recently announced tax cuts and lower interest rates."

The BankSA State Monitor also showed consumers aged 18-24 remain the most confident age segment in SA, while males are more confident than females for the eighth consecutive survey.

Community services, financial services and manufacturing industries recorded the largest increases in business confidence while construction, retail and recreational industries recorded the largest decreases in business confidence.