Finance and insurance sector SMEs have recorded their lowest confidence levels in five years, according to the quarterly Sensis Business Index.

Net confidence dropped six points to 40 points, with weak performances expected in key indicators such as sales, profitability, wages and employment.

“Falling sales were the main concern of worried SMEs in this industry,” the report says. “Being an established, solid business dominated the reasons given for confidence.”

However, last quarter was positive for the sector, with sales and profitability rating highest and positive results for prices, wages and employment.

Across all sectors surveyed, net confidence increased seven points in the September quarter to a net 46.

The hospitality sector led on 62 points, followed by communication, property and business services (60 points) and cultural, recreational and personal services (57 points).

Sensis CEO John Allan says such optimism has not been recorded in more than seven years.

“Not only are businesses confident about the economy generally, but they are also confident about their own specific strengths, with the business confidence score up seven points to sit at the equal-highest level since March 2010,” he said.