A new survey has found that business confidence among Australia's small- and medium-sized enterprises (SMEs) jumped substantially last quarter based on actual performance as well as expectations for the future. In fact the feel-good factor is now at a level not seen since August 1994 according to the survey by Telstra offshoot Sensis.
Its Business Index - Small and Medium Enterprises (formerly the Yellow Pages' Business Index) shows business confidence has risen 7% in the July quarter to 61 per cent.
Sensis chief economist Steven Shepherd said there had been a noticeable improvement in the majority of business indicators that measure the health of the SME sector. "Actual sales and profits improved, as did short- and medium-term expectations," Mr Shepherd said.
"For the second consecutive quarter, capital expenditure increased and expectations improved. This is significant because capital expenditure is often viewed as the engine of economic growth."...
