Small and medium business (SMB) confidence is at its highest level since March 2010 thanks to growing optimism in the local economy, according to the latest Sensis Business Index (SBI) survey.
The overall SMB confidence level in Australia has jumped eight points to 46 on the SBI. The SBI is based on a survey of 1000 SMBs across Australia. Around 61% of SMBs are feeling confident compared with 15% of SMBs who are worried.
"Just as the stock markets shrugged off global uncertainty to finish 2016 on a high, it was also the case for Australia’s small and medium businesses," Sensis CEO John Allan said in a statement. "Perceptions of the economy are now in positive territory for both the short and long term projections and this points to a strong year ahead."
The lower Australian dollar also bolstered confidence as it had a positive impact on exports in 2016.
Having said that, SMBs are still sceptical of the Federal Government's ability to help out their businesses.
When breaking business confidence out by state and territory, Tasmania was the only region that saw a decline:
- NSW: 54 (up 1 point)
- VIC: 52 (up 21 points)
- ACT: 46 (up 11 points)
- QLD: 43 (up 4 points)
- TAS: 38 (down 14 points)
- SA: 32 (up 1 point)
- WA: 21 (up 11 points)
- NT: 16 (up 7 points)
Find out more about the results over at Sensis.