Confidence among SMEs in the insurance and finance industry has surged 31 points to +71 on December’s Sensis Business Index – one of the strongest levels recorded.

The score is 25 points above the all-industry average, and follows strong sales and profits.

Being “an established, solid business” is the most common reason for confidence, followed by having “specific business strengths”.

An unfavourable business environment is the biggest concern.

In the three months to December the insurance and finance sector achieved the highest net balance results for sales (+18) and profitability (+11). 

Prices and wages (both +10) and employment (+5) were also positive. However, capital expenditure for the year was negative at -7.

For the current quarter, the industry’s expectations exceed the national average for sales (+29) and profitability (+27) and are positive for prices (+16), wages (+14) and employment (+10).

Expectations for the year ahead include profitability at +39, sales at +36, prices at +35, wages at +25, capital expenditure at +12 and employment at +8.

Across all industries, Australian SME confidence has reached its highest level in more than six years, with an eight-point rise last quarter to net +46 (61% confident, 15% worried).

The findings are drawn from 1000 phone interviews with owners or managers of businesses employing up to 199 people.