South Australian business confidence and conditions improve
Friday, 29 July 2016
Investment and business confidence in South Australia rose in the June quarter, as shown by leading economic surveys released yesterday.
A number of recent surveys, including the Sensis Business Index Survey, NAB Quarterly SME Survey, NAB Quarterly Business Survey and ANZ/Property Council Survey, all indicate improving business confidence and conditions in South Australia.
Also released yesterday, the latest Investment Monitor, which shows a lift in investment. The Monitor reports that projects in South Australia, with a total value of $42.6 billion in the June 2016 quarter, were up 2.6 per cent. This is 0.8 per cent higher than a year ago.
Minister for Investment and Trade Martin Hamilton-Smith said this is good news for South Australia and shows that investment and trade initiatives, including trade missions, small business support programs and establishment in 2015 of Investment Attraction SA are having a positive impact.
In the first 12 months of operation, the South Australian Government’s Investment Attraction agency alone has generated more than 3800 jobs and more than $950 million in investment for the State.
Sensis Business Index Survey In the June 2016 quarter, confidence among small and medium businesses rose by 24 points in South Australia to +29. SA was the “big mover” this quarter and is no longer the least confident jurisdiction.
NAB Quarterly SME Survey SME business confidence improved in South Australia in the June quarter, moving into positive territory. SME business conditions improved in the June 2015 quarter in South Australia but remains in negative territory (at -8).
NAB Quarterly Business Survey Business confidence fell marginally in South Australia in the June quarter but remains in positive territory (down 1 index point to +6); the highest confidence level among the states and above the national average (+2). Business conditions improved in South Australia in the June quarter to move into positive territory for the first time in the year (up 7 index points in the quarter to +5).
ANZ/Property Council Survey Confidence levels in South Australia’s property sector recorded the strongest improvement among all the jurisdictions surveyed in the September quarter, up 10 index points to 133 points (compared to a national fall of 3 points).
Compared to a year ago, confidence is 13 points higher in South Australia (3 points lower nationally).
NAB Monthly Business Survey Business confidence fell 1 index point in South Australia in June but remained in positive territory at +6 and in line with the national average. Business conditions in South Australia improved in June, up 1 index point to +8. Nationally conditions rose 2 index points to +12 in June.
The latest Investment Monitor lists projects in South Australia with a total value of $42.6 billion in the June 2016 quarter. This is up 2.6% compared to the previous quarter (March 2016) and 0.8% higher than a year ago. Over the quarter, in South Australia: the value of definite projects ('under construction' or 'committed') rose by $398 million in the June quarter, driven by new listed private projects while the value of planned projects ('under consideration' or 'possible') rose by $698 million, driven largely by new listed public projects.
Newly listed projects in the March quarter include:
- SA DPTI, Strzelecki Track Upgrade and Sealing ($450m, ‘under consideration’)
- Commercial and General, Calvary Adelaide Hospital - 12-storey and 350 beds ($300m, ‘committed’)
- SA DPTI, Upgrade rail line to separate freight route from Outer Harbor, in Adelaide ($258m, ‘under consideration’)
- Monopoly Property Group, Wallaroo Shores Resort, Yorke Peninsula ($220m, ‘under construction’)
- City and Central Consulting Pty Ltd, Resort, American River at Kangaroo Island ($35 million, ‘committed’)
- BOSS Resources, Honeymoon Uranium Mine expansion, Broken Hill ($25m, ‘possible’)
- Thomas Foods International, Expansion of Murray Bridge cheese-making facility ($25m, ‘under consideration’)
- Colliers International Australia, Mt Barker Village Shopping Centre upgrade ($na, possible)
Major projects currently listed in South Australia include:
- Central Eyre Iron Project ($4.5 billion, ‘under consideration’)
- The Arckaringa Project ($3.2 billion, ‘under consideration’)
- Construction of the New RAH ($2.1 billion, ‘under construction’)
- Senvion, Ceres Project wind farm, Yorke Peninsula ($1.5 billion, ‘under consideration’)
- Renewal SA, Tonsley Park redevelopment ($1.0 billion, ‘under construction’)
- Rex Minerals, Hillside copper-gold Project, Yorke Peninsula ($900 million, ‘under consideration’)
- Neoen/Negawatt Capital Investments, Hornsdale Wind Farm, north of Jamestown, ($900 million, ‘under construction’)
- Transport SA, South Road Upgrade ($896 million, ‘under construction).
Quotes attributable to Small Business Minister Martin Hamilton-Smith
These are all great signs for South Australia as we continue to work to build jobs and transform the economy. We should be encouraged by the lift in confidence in South Australia as well as the new investment and jobs brought in by IASA.