BUSINESS in the Rose City seems ready for a resurgence as consumers and traders begin to regain confidence on the heels of a bumper Christmas period.

The Warwick Chamber of Commerce is reporting strong indications of improved business conditions across the Southern Downs, as retailers respond positively to the bumper Christmas season.

Chamber of Commerce president Bruce Partridge said while rural industries were awaiting rain, other industries were showing signs of improvement.

"Retail activity over Christmas has been reported at least 10% higher in traffic and turnover by retailers who were part of the Chamber Christmas promotion," he said.

Rose City Shoppingworld manager Jason Gard said retailers in the centre had a good Christmas.

"We've seen some growth over Christmas in customers," he said.

"Reports from retailers are that customers are purchasing and spending more."

Mr Partridge pointed to the likelihood of developments approved by the council moving into the construction phase as good for business in the region.

"This will see an upsurge in employment and business activity," he said.

"These projects include the Allora grain facility, the proposed broiler chicken farms such as the Carr meat chicken farm in Elbow Valley."

Suncorp Regional Rural Bank manager David Littleproud said businesses were cautiously optimistic about the year ahead.

"We have turned a corner," he said.

"There's cautious optimism after some tough years."

Mr Littleproud, the former president of the Warwick Chamber of Commerce, said low interest rates were driving confidence to invest.

"All indicators from the RBA have rates likely to stay low in the foreseeable future," he said.

"This has consumers spending more money."

Mr Gard said retailers were happy to see the return of customer confidence in spending.

"Christmas 2013 was stronger than in 2012 - just as this New Year is stronger than the last," he said.

"I see that as business confidence."

Out-of-town shoppers and locals have responded well to Chamber of Commerce advertising and promotional activities, Mr Partridge said.

"The Chamber believes that Warwick retailing can benefit from more of these targeted and planned campaigns," he said.

Mr Partridge said another significant indicator of business confidence was a growth in real estate activity in the state.

"These growth figures have flowed on to more regional areas," he said.

"Real estate agents are reporting cautious optimism."

Mr Littleproud also pointed to the growth in real estate as a business confidence indicator.

"There's green shoots in the property market," he said.

"This has been fuelled by lower rates and political stability."

FOR more on the growth in property markets, including an outlook for 2014, grab a copy of tomorrow's Daily News.