Justine Davies | Canstar
According to the latest Sensis Business Index (SBI) survey, small and medium business confidence in Australia is at a five year high, rising by nine points over the past quarter. Interestingly though, not all economic indicators are aligned to this rise in confidence.
“While sales and employment improved and prices remain positive, wages and profitability went backwards this quarter. These are not the results you would expect to see when confidence has lifted to a five year high,” observed Sensis Chief Executive Officer, John Allan.
“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.”