Welcome to the October issue of xpress.
We have welcomed the Reserve Bank’s decision in recent months to leave interest rates on hold, however the time has come to cut rates.
As we approach the very important Christmas trading period, consumers need the confidence to get out and start spending again.
The Reserve Bank’s premature interest rate rise over last year’s Christmas trading period was extremely damaging and it is essential that we have consumers out and spending again in the coming months.
Many important industries throughout South Australia remain under pressure and it is important that businesses have confidence in the economy to employ more workers over the coming months.
Speaking of consumer spending, it was pleasing that the latest retail trade figures revealed a small increase in local retail spending in August.
While it was only a small increase, it was in line with the national average and, after a tough year for the retail sector, is the second increase in the past two months.
The recent announcement from the State and Federal Government to approve the plan to develop the Olympic Dam is good news for the local economy.
The employment opportunities and infrastructure requirements from this project will benefit many South Australian businesses and provide many flow-on benefits throughout the economy.
Local exports have been one of the few shining lights in the South Australian economy over the past 12 months, however August data revealed a decline in local exports.
The strong dollar and rising business costs continue to make it a challenging environment for our local exporters, however it is pleasing that local exports are well above the level that they were at the same time last year.
Speaking of exports, the presentation of the Business SA 2011 Export Awards will be held next week and it promises to again be a great event as we pay tribute to some of the State’s finest exporters.
A full round-up of the event, including all winners, will be published in the next edition of xpress.
Business SA’s popular networking series continued with the latest event hosted by the South Australian Cricket Association at Adelaide Oval. A full wrap-up of the event is available in this issue of xpress.
Also in this issue we have a look at the assistance being offered from Business SA and we catch up with a couple of Business SA members.
Until next edition, Peter Vaughan