BankSA’s State Monitor survey for July 2022 shows business confidence increased from 118.6 points in February to 121.4 points this month.

Consumer confidence recorded a greater increase although from a lower base, up 4.4 points to 112.9 for July’s survey.

BankSA general manager business David Firth said the greatest drvier of the shift was a perception of increased small business activity after the lifting of COVID-19 restrictions.

“Increasing concerns about individual cost of living and financial pressures appear to have been offset by a greater level of confidence as we have moved beyond the previous pandemic restrictions, and the associated perception that business activity has significantly picked up in this survey period,” Firth said.

“Consumers recorded a 36 per cent positive shift in their perception of business activity, and businesses a 15 per cent increase over the past few months.

“The removal of previous mask and capacity restrictions, and a return to ‘normal’ life, has contributed to increased activity and confidence in this survey.”

Firth also highlighted that business and consumer confidence was still well down on the record highs posted in July 2021.

In that survey, business confidence reached 134.6 points – the highest level recorded since the survey began in 1997 – while consumer confidence was at 121.8 points, the third highest level since 2010.

This year’s July survey shows 25- to 34-year-olds as the most confident consumer segment.

The most confident industries, according to the survey, are construction, community services and finance.

The largest declines in industry confidence came in transport, manufacturing and agriculture.

The survey also contained some warning signs ahead, with a 16 per cent decrease in confidence that the climate for doing business will improve for the next 12 months.