South Australian business has welcomed the change in Prime Minister, saying it should end a “toxic tennis game”.

Business SA chief executive officer Nigel McBride told InDaily this morning that Malcolm Turnbull’s ascension to the Prime Ministership could provide the boost the state’s business sector needed.

He said the change in PM should end conflict between state and federal governments on economic issues.

“It was a toxic tennis game,” McBride said.

Echoing comments from national industry bodies, McBride said he believed SA business would respond favourably to Turnbull’s key message of building economic confidence.

“The business community in South Australia is desperate to see what we saw yesterday,” McBride said referring to Turnbull’s comments about the need to build confidence in the economy.

“I think days like that are too rare in the business community.

“It’s fair to say there’s a great deal of disillusionment around the state and federal governments.

“Business confidence is down and we haven’t even begun to see the unravelling of key industries yet.

“The business community is absolutely crying out for federal and state governments to create these opportunities.”

Speaking moments following the release of Business SA’s first SA Economic Barometer report, McBride anticipated Turnbull would add Adelaide to his touring schedule after a short settling-in period.

“I think he’ll make it very clear, I think we’ll see him out and about here.“

National industry bodies also welcomed the arrival of a PM with a track record in business.

Analysts say the former investment banker could lift consumer and business confidence through his popularity with voters and ability to explain the need for economic reforms.

Australian Chamber of Commerce and Industry chief executive Kate Carnell warmed to a promise of more collegiate and co-operative government, and urged Turnbull to undertake reforms to boost productivity and competitiveness.

“We hope to see Mr Turnbull continue with efforts to repair government finances, fix the problems of federation, undertake critical tax reform and advance the cause of free trade,” she said.

Financial Services Council chief Sally Loane echoed the call for reforms, which AMP chief economist Shane Oliver and UBS economist Scott Haslem said now had a better chance of passing due to Turnbull’s willingness to compromise with political opponents.

“The change does nothing to alter the underlying fundamental challenge facing Australia, which is the end of the resources boom and the resultant sluggish economic growth,” Oliver said.

“But it does have the potential to help.”

McBride said the Federal Government needed to restore SA’s confidence after a horror economic “perfect storm” of falling commodities, job losses in the automotive sector, high unemployment and the unfortunate “canoe” comments from former Defence Minister David Johnston.

“If you really wanted to disaffect [a state] that’s the way to go [about it].

“They were insulting and completely unnecessary.“

He said the state was now at an economic crossroads that could flourish under a new relationship between Canberra and South Australia.

“I hope it’s a transformational crossroads and the question will be how quickly we can transform.

“[South Australia] needs to recalibrate and we’ve got to get more out of our federal pie.

“We were really down the pecking order.”

Latest ABS figures showed the SA economy had contracted by 0.2 per cent in the June quarter and was predicted to grow at 1 per cent per annum, half Australia’s growth rate.

“Weak business confidence and conditions are not helping to arrest SA’s unemployment rate which is stuck around 8 per cent,” the SA Economic Barometer report stated.

“Building data is also mixed with apartments construction showing some promise in an otherwise subdued sector.”

The lower dollar had assisted food and beverage exporters but overall state export earnings had declined due to falling commodity prices slowing the mining sector.

“On a positive note,” the report stated, “retail trade is holding up with over 4 per cent per annum growth, only just below the national average.”

McBride said as the state relinquished its ties with traditional manufacturing, rebuilding its economic confidence lay with small to medium businesses which made up 98 per cent of the state’s industries.

He said the Weatherill government’s recent appointment of leading UK trade and economics adviser Mike Hnyda to the state’s new investment agency to attract interstate and international business to SA signalled the start of a new business approach.

“I think everyone has woken up,” he said.

“We need to be open for businesses. These are the kinds of people we need to be bringing into South Australia.

“Let’s get on with doing stuff.”

– with AAP