Confidence among small and medium businesses in regional Australia doubled the increase in metropolitan locations, according to the latest Sensis Business Index (SBI) survey.

Although metro businesses remain more confident (+52 versus +44), growing regional confidence has closed the gap, with confidence rising by 10 points in regional Australia.

Sensis CEO John Allan said businesses in regional Tasmania, South Australia and the NT, were more optimistic than their metropolitan counterparts.

“Views about the economy now and in 12 months’ time, the key indicator performances last quarter, and the expectations for this quarter suggest more conducive conditions in metropolitan areas, but regional SMBs are also optimistic and it’s good to see that gap closing,” he said.

Looking at the picture nationally, small and medium business confidence increased from an already impressive level to the highest balance recorded since December 2009 - up seven points to +49.

Regional confidence is strongest in Tasmania (up 12 points to +62), followed by South Australia (up 14 points to +53) and lowest in Western Australia (up 3 points to +23). The national regional average is +44.

The Northern Territory showed the highest increase in regional business confidence this quarter, rising 30 points to +32.

The only state or territory to report a drop in regional confidence was Victoria which fell 11 points to +37, 7 points below the national average.

Last quarter, regional performances were stronger for employment (-2 to +2) and prices (+6 to +8), but regional SMBs performed worse than metropolitan areas on sales (-5 versus +7) and profitability (-11 to +2). The wages balance was also lower (+8 to +12).

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