Most small and medium businesses in Australia believe the economy is either slowing (35% of respondents) or standing still (52%), according to the March-quarter Sensis Business Index. Only 13% think it is growing.

Despite these bleak assessments, business remains optimistic: 55% feel confident about prospects, only 20% are worried and the rest fall somewhere in between.

The three most confident sectors, according to Sensis, are health and community services, property and business services, and wholesale trade.

The insurance and finance sector remains above the national average for business confidence, while retail, manufacturing and logistics are the least confident sectors.

Sensis says despite difficult business, economic and industrial conditions, “being an established, solid business” is helping to maintain confidence levels in the insurance and finance sector.

The index is based on a national survey of 1000 small and medium businesses.