The latest Sensis Business Index (SBI) survey has been released with business confidence up nine points this quarter.
The results record the highest level in over five years among Australian small and medium businesses (SMBs).
Sensis CEO John Allan said that despite decline in profits, most business are expressing optimisim in the future economic climate.
“While sales and employment improved and prices remain positive, wages and profitability went backwards this quarter.
“Rather than being driven by these indicators, confidence is instead being driven by perceptions that the overall economic environment is improving.
“On top of this, the non-cyclical influences remain strong, with businesses continuing to feel particularly positive about their own specific business strengths.”
The survey totalled a net balance score of +44 which remains the difference between confident SMBs at 60% and worried SMBs at 16%.
1000 SMBs were surveyed.
On a state-by-state basis, New South Wales has extended its lead and South Australia has been replaced by Western Australia as the least confident state.