Business confidence at highest level since 2011

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Business confidence has hit its highest level in nearly five years, a new survey has revealed.

The latest Sensis Business Index survey has recorded its highest reading since March 2011. The survey shows three times as many businesses are now confident (57%) as those who are worried (19%). The result represents a 12 point rise in the index over the December quarter.

“Businesses told us that the key factors driving confidence are the specific strengths of their business, growing sales and being well established,” Sensis CEO John Allan said.

Confidence rose in every state and territory except the ACT. Tasmania was the most confident state, recording a 46 point improvement from the previous quarter.

“All the states and territories posted a positive business confidence score and there was even a 15 point increase in South Australia, albeit it remains in last place. The ACT was the only location where we saw a decline this quarter following concerns around declining sales and the business environment,” Allan said.

While businesses feel confident about their own business prospects, perceptions about the economy remained negative everywhere except Tasmania. Eighty-six per cent of businesses believe the economy is either slowing or standing still.