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Young boost fortunes for S.A.

YOUNG South Australians are driving the State to record levels of personal optimism, with the majority of consumers believing the future is looking brighter, a major new survey shows.

The business community is confident the positive sentiment will translate into jobs and spending beyond Christmas.

The Australian Retailers Association with professional services group, Deloitte, has conducted the comprehensive survey of South Australians.

The figures reveal 72 per cent of young people - aged 18 to 30 - are feeling positive about the state's future and 83 per cent are personally optimistic.

The numbers - the most positive for years - are in stark contrast to the 2002 pre-Christmas survey when only 57 per cent of young people thought the State's future was looking good.

Overall 55 per cent of the respondents were positive about the State's future - up from 41 per cent in 2002 and almost at l999's high of 57 per cent. The figures also reveal more than 80 per cent of the people in all age brackets feel personally optimistic - except for those aged over 61. However, the level of optimism among the older people surveyed increased from 35 per cent in 2002 to 66 per cent.

Deloitte corporate finance retail analyst Marcus Bailey said the figures showed a wave of confidence across the state which meant a positive start to the new year.

"It is a great sign for the State," he said.

"That is a fantastic result.

"South Australia usually cops a beating for its youth unemployment and young people moving away but the majority of 18 to 30 year olds are optimistic about the future of their State."

State Minister for Youth Stephanie Key said the state's economy was buoyant and young people were clearly feeling positive about it.

Recent figures also showed both an improvement in youth unemployment and an increase in apprenticeships, she said.

The number of people with apprenticeships in SA in the past year has increased 14 per cent while the unemployment rate for people aged 15 to 19 fell to 19.7 per cent in one month.

Mr Bailey said nearly half of the 300 people surveyed believed they would be better off financially in 2005 - despite the fact that 82 per cent expected interest rates to rise sometime during the year.

"I think that (sentiment) can be attributed to underlying asset wealth," he said.

"From a balance sheet perspective people are better off than they ever have been before." Retailers Association state executive director Stirling Griff said the results were very encouraging.

"We're seeing levels of state and personal optimism that we haven't seen for many years," Mr Griff said.

That optimism would lead to strong retail sales, in turn leading to other positive growth.

"Strong retail sales means more jobs for South Australians and a strong local economy heading into 2005," Mr Griff said.

Business South Australia chief executive officer Peter Vaughan said the survey reinforced the fact SA was at a 30-year high for optimism, business activity and general well-being across the State. "We've done remarkably well," he said.

Mr Vaughan said the optimism among young people was especially pleasing as the State needed to retain and attract youth to address population issues.

BankSA managing director Rob Chapman said he was optimistic about SA's underlying economic strength and that business investment was the stand-out performer in the state's economy.

"For the first time in the state's history, our investment per head of population is now above the national average," he said. "As a share of national output, local investment is also ahead of the Australian average.

"Business confidence has also increased over the past four years and now stands very high historically."