The finance and insurance sector has topped a survey of SME confidence levels, despite its score easing from previous highs.

Net confidence in the sector fell nine points to 62 points but remained above the average by 18 points, according to the quarterly Sensis Business Index.

“Last quarter saw modest performances on key indicators and expectations are more positive,” the report says.

Respondents cite falling sales and an unfavourable business environment as the two most common reasons for lower confidence compared with the previous survey.

But the sector led the way on predictions, with positive expectations for sales, profitability, prices, wages and employment.

Across all surveyed sectors, net confidence decreased two points to 44, the second-highest level in the past seven years.

“While business confidence and perceptions of the economy are slightly lower, the result is still one of the best we’ve seen,” Sensis CEO John Allan said.

Health and community services was the next most confident sector, rising 12 points to 61. At the other end of the rankings, manufacturing net confidence slipped 22 points to just six.

By region, the most confident areas were the ACT, NSW and Victoria, while capital city respondents were more upbeat than regional participants.

The survey was based on 1010 phone interviews with SME proprietors or managers.