Business confidence has fallen to its lowest level in two years.
Roy Morgan Research's latest Business Confidence survey has revealed business confidence fell 5.4% from May to June, a decline the research firm said reflected the continuing dampening effect of the Federal Budget.
Business confidence is now 20.7% below its peak in October 2013 following the Federal Election, and at its lowest level since June 2012.
The decline was driven by a dwindling proportion of businesses who said they believed economic conditions in Australia would improve over the next five years. This measure is now at its lowest level since August 2011.
In spite of the decline, the finance and insurance sector was the most confident. However, Roy Morgan industry communications director Norman Morris suggested fewer businesses would be looking to borrow in the future.
"Not only are businesses becoming less inclined to borrow but they are also having issues dealing with banks, with the Roy Morgan Business Bank Satisfaction showing that they are well below the satisfaction level of the banks’ personal customers. It is obvious from this that banks and business will need to work more closely with each other if they are to achieve a positive outcome for all parties and the economy," Morris said.
