IRIS Research executive director Simon Pomfret said the survey produced a more positive result at a time when the IRIS business survey result for the September quarter was surprisingly good considering reports of doom and gloom.

Mr Pomfret said there were signs of positive activity in the local economy.

"We have actually had more businesses who have indicated conditions were improving," he said.

"Encouragingly the actual forecasts that businesses gave us in June for September actually got us over the positive line in terms of the zero net balance. So there is some positive news out there about what is going on in our local economy despite what you are hearing about job losses, particularly in the manufacturing sector."

Mr Pomfret said he was encouraged by the latest survey.

"The finance, property and business services sector has absolutely gone off the Richter scale in the last quarter," he said.

That was reflective of what was happening in the property market in the Illawarra, which was flowing down to the finance and business services sectors.

Historical low interest rates and limited stock had driven property prices up as well.

Mr Pomfret said unfortunately other sectors such as manufacturing and retail were still in negative territory but the good news was manufacturing was not as low as he thought it might be.

"And good things are still happening in the tourism sector in terms of growth," he said.

"It is still bubbling along quite well. Certainly we are not experiencing the kind of growth we were getting two to three years ago but it is still improving, we are still getting activity and people are still visiting this area."

Mr Pomfret predicted an interesting period ahead in the retail sector with so much infrastructure coming on, such as the new GPT Group shopping centre opening in just over two weeks.

He is interested to see how that affects shopping habits.

In other areas employment was still fairly flat apart from jobs growing in the finance, property and businesses services sector.

Mr Pomfret said it would be good for the Illawarra if interest rates continued to stay low for some time.

The unemployment rate locally is just below 7 per cent, which is about 1.5 per cent above the state's and was increasing slightly because of the job losses in the manufacturing sector.

But Mr Pomfret does not expect it to go much higher than 7 per cent.

Consumer sentiment is still quite flat because people felt their present financial position was a little lower than where they would like it to be, as was what they predicted their future financial position to be.

Property prices over the last year have increased by about 13 per cent in the Illawarra and the median price of a house is heading towards $500,000.

"The volume of sales has increased but is certainly not matching the price rises," Mr Pomfret said.

"There is not a lot of stock out there and that is driving prices."

Mr Pomfret expected more residential building to result from that, especially in new sub-divisions around Shellharbour.

"Building approvals are going very well ... up about 25 per cent over the last 12 months," he said.

"When the land comes on it is getting snapped up. Building should do quite well over the next 12 to 18 months."

In non residential there is plenty being built that was approved some time ago and that would continue to keep many cranes in the skyline across the region.

Mr Pomfret said the mood heading towards 2015 was certainly a little more positive for the region.