Business confidence across Australia hits highest level for 2015

The national economy is dependent on the ability of allowing Australia's businesses to trade with each other freely. Consequently, business confidence is increasingly important. Fortunately, while 2015 has had its ups and downs, wider business conditions recently hit their most promising position of the year.

Roy Morgan Research's Business Confidence measure increased to 119.3 points in October, taking it to the highest level since November 2014.

The driving force of positive conditions

While business confidence across Australia is on the up, what's the secret behind the positive change? Well, alterations in government have a had a knock-on effect. Specifically, Roy Morgan explained that business confidence has increased by over 16 per cent in total since new Prime Minister (PM) Malcolm Turnbull assumed office.

"It is a potentially good sign for the economy that Roy Morgan Business Confidence has continued to improve in October, given the positive impact the change of PM already had in September. Contributing to this improvement was the fact that there was a lack of major bad economic news during the month," surmised Norman Morris, Roy Morgan Research's Industry Communications Director.

An increase in spending

A higher level of confidence can potentially have a large impact on the country's economic outlook as a whole. More companies are likely to be reinforcing their business development strategies, and endeavouring to spend while conditions are at the optimum. 

Naturally, this has the potential to affect Australia's financial outlook from both a regional and national perspective. Business dealings across states could be on the up, while the general better conditions for trade could even see small entities looking overseas to unlock more profitability.

While there is still some room for improvement, it's clear that businesses across Australia are likely to finish the year in a strong position, and set themselves up for a positive 2016.