Business confidence in Australia rose 2.1 per cent in March, according to findings from Roy Morgan Research.
The uptick follows steady improvements in the Australian share market, after a drop in January and the beginning of February amid concerns for the global economy. The rise in business confidence matches a similar upsurge in consumer confidence, with Roy Morgan Research pegging a 2.9 per cent rise in consumer confidence since the end of February.
This year is likely to see volatility in both business and consumer confidence, amid continued speculation of an early federal election.
“The stabilisation of equity markets and gentle improvements in confidence – of both businesses and consumers – perhaps played a part in Turnbull’s decision to bring the deadlock in the Senate to a head in mid-March and challenge the Senate crossbenchers to pass the Government’s reforms during a recalled session of Parliament from mid-April or face a double dissolution election on Saturday, July 2, 2016,” Roy Morgan Research Executive Chairman Gary Morgan said.
“The political uncertainty over the next few months as Australians head to the polls also means recent gains in business confidence, and consumer confidence, may retrace somewhat in the next few months before the result of the federal election is known.”
The rise in business confidence in March was mainly due to increased confidence among businesses about economic conditions in Australia.