Business confidence 'is on the rise'

Business banking customers were a little more optimistic about their future prospects in October, a new study by Roy Morgan Research has suggested.

The company's corporate confidence barometer was measured at 114 during the month – up from 109.3 in September.

More entrepreneurs stated that the next 12 months would be a good time to invest in their enterprise, as they felt the economy was looking in good shape.

As you would probably expect, the results varied across different sectors, with firms in the construction, accommodation and insurance industries feeling far more positive than those that specialise in mining, retail and manufacturing.

The Reserve Bank of Australia also decided to cut interest rates by 25 points during the month, which would have come as a much-needed boost for firms that have previously taken out business loans.

However, the central bank opted not to make further readjustments in November and Roy Morgan's industry communications director Norman Morris said business sentiment can quickly take a turn for the worse.

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