Roy Morgan’s latest business confidence survey, which canvassed 1,013 businesses across Australia, found business confidence is also above the four-year average.
Roy Morgan industry communications director Norman Morris said the improvement was largely due to the “increase in optimism” about the Australian economy over the next 12 months.
“This improved outlook was a result of a number of factors, including issues relating to the Budget going relatively quiet due to an increased focus on international events and the blocking by the Senate of a number of major changes,” Mr Morris said.
“Other positive impacts were interest rates being kept low, house prices continuing to rise and unemployment remaining unchanged,” he said.
Roy Morgan also found business confidence is now only 9.8 per cent below its peak of 136.3 points in October 2013.
“In September, finance and insurance (138.1) remained the most confident sector, followed by rental, hiring and real estate services (135.9),” a statement from Roy Morgan said.
The research house also pointed out the increase in business confidence has led to a rise in the proportion of businesses thinking that the next 12 months would be a good time to invest in growth.
“With some small signs that business will consider increasing investment in the next 12 months, banks will need to improve their dealings with customers as shown by Roy Morgan Business Bank Satisfaction,” Mr Morris said.
