South Australians optimistic despite concerns about rising living costs

Seventy-eight per cent of South Australians believe their financial security will improve or remain the same over the next 12-months despite concerns about rising living costs and the local economy, according to independent research conducted by local market research firm Square Holes.

The research could mark a turning point in South Australian’s confidence levels with an 8% increase in the number of people who think their financial security will be better this year than last.

It also shows consumers remain more confident than the business community with the recent Bank SA State Monitor survey finding only 35% of business owners believed the climate for doing business would improve over the next twelve months.

Square Holes Managing Director Jason Dunstone said businesses need to harness the underlying optimism of South Australians who remain positive despite a challenging economy and cost of living pressures.

“Businesses tend to be more pessimistic than consumers and they underestimate the role they can play in helping to lift consumer confidence.

“Both business and government need to lead in generating confidence and more than ever consumers are looking for decisive leadership.

“Businesses need to explore how they can tap into the mood of consumers who are largely optimistic but primarily concerned with the financial security of the family living in their home.

“The research found the security of their wider network of family and friends and even their employers was much less of a concern.

“South Australians also thought their financial security would be in a much better position in twelve months than other Australians and people living overseas.”

The results come at a time of uncertainty in South Australia with the future of large employers like Holden under a cloud, the state’s mining sector slowing down and unemployment rising well ahead of other states.

Some of the key research findings include:

• 78% of people believe their financial security will improve or remain the same over the next year.
• 70% of people viewed their current financial security as the same or better than 12 months ago.
• 22% of people believe their financial security will be worse in 12 months.
• 83% of people rated family in their home as the highest priority in terms of financial security.
• 54% of people expect to spend more on household bills over the next year.
• 37% of people expect to spend more on groceries over the next year.
• 19% of people expect to spend less money donating to charity over the next year.

Square Holes surveyed 409 South Australians across the state. The research was conducted between July 8 and July 11.

Issued by Hughes Public Relations: Simon Hatcher on (08) 8412 4100 or simon@hughespr.com.au