Business Illawarra has warned that rising insurance costs, skills shortages, and falling consumer spending are still eroding business confidence, despite a slight improvement in sentiment.
Business NSW’s latest quarterly Business Conditions Survey reveals the South Coast and
Southern Highlands has improved from -75.0 in Q4 2024 to -54.5 in Q1 2025.
While this uplift is encouraging, Business Illawarra Director Coralie McCarthy warned that local businesses remain under pressure, with confidence levels still amongst the lowest in NSW.
“Insurance, rising costs, skills shortages, and red tape are holding businesses back,” Ms.
McCarthy said.
“We need to rebuild confidence in our region, it’s been in negative territory for too long.”
The survey found that while falling interest rates have brought some hope, only 54% of
businesses in the South Coast and Highlands believe a rate cut would benefit them, compared to 65% across NSW
