Australia's business confidence hits two year high

The economy is reliant on the confidence that businesses show in it. After all, if companies aren't willing to freely expand and engage with the wider market, then regression can quickly set in.

Fortunately, the findings of National Australia Bank (NAB) have shown that Australia's enterprises are currently experiencing a new lease of positive sentiment. In fact, overall confidence in the market is at the highest level it's been since the 2013 election. 

Confidence rises across industries

By sector, confidence is up across the board. The vast majority of industries are trending positively, apart from the mining sector which has slowed slightly due to economic conditions.

Many of the positive feelings coming from the country's businesses are down to the budget, with a number of organisations believing they have the applicable support from the government to invest and grow.

"A post-budget kick in confidence appears to have driven better business outcomes," explained chief economist at NAB Alan Oster, as quoted by Bloomberg News.

As touched on, the mining investment boom has slowed, and the sector is not what it once was. However, the rest of Australia's businesses appear to be striving to pick up the slack.

"The economy is becoming increasingly reliant on an upturn in non-mining investment to drive growth and productivity," Mr Oster surmised.

The brass tacks for businesses

So, what do the positive findings of NAB mean for businesses? Well, the boost in confidence is likely to be a sign of expansion. In terms of financing, there will be more opportunities for companies looking to grow, providing they thoroughly assess their business structures and plan accordingly.

NAB's long-term forecasts predict that business activity will steadily grow over the next three years. Consequently, now could well be the best time for companies of all sizes to reassess their financial position and set goals for the future.