Australian business confidence shows signs of recovery

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Australian business confidence is recovering with an increase of 3.3 points from February to a score of 120.6 putting business confidence back above levels preceding the federal election in August 2013.

The survey conducted by Roy Morgan Research, is the result of interviews with businesses across all industries, sizes and locations around Australia.

The modest recovery in business confidence was driven by an increasing proportion of businesses reporting an improvement in their financial position compared to 12 months.

The survey also showed a sharp increase in the belief that the next 12 months will be a good time to invest in growing a business.

Industries supporting the rise are real estate (up 1.8 points to 140.8), professional services (up 2.1 points to 126.1) and wholesale trade (up 2 points to 130.1).

Business confidence in the mining industry fell 16.9 points, although at 148.5 it remains the most confident industry in Australia.

The finance industry remained at a very high level of business confidence at 142.6, though slightly down from February (-0.6 points).