If you’ve been feeling like the business world has been holding its breath lately, you’re not wrong. After months of uncertainty, the latest Roy Morgan Business Confidence report shows that confidence levels across Australia are starting to bounce back.
But what does this mean for you and your business? Let’s break it down.
The numbers behind the mood
Business Confidence is measured by asking business owners and managers how they feel about the economy and their own prospects in the year ahead. A score above 100 signals optimism. In July 2025, Roy Morgan Business Confidence increased 0.6pts to 103.0, the first time it’s been in positive territory for a while. Business Confidence in Western Australia is at 115.1 and up a large 9.9pts from a year ago.
This rise follows a rocky few months where confidence dipped below 100, weighed down by high costs, global uncertainty, and local challenges. The rebound suggests businesses are starting to see a clearer path forward.
Why the turnaround?
Several factors have helped lift sentiment:
- Interest rates easing: The Reserve Bank’s recent cut has given businesses some breathing space on borrowing costs.
- Political clarity: With the federal election now behind us, the uncertainty that comes with a campaign has settled.
- Looking long term: More business owners are saying they feel positive about the economy over the next five years, even if the short term still feels tough.
Of course, not everyone is feeling upbeat. Some sectors, like agriculture and transport, remain cautious, and confidence can shift quickly if costs or global conditions change.
What it means for small and medium businesses
So, should you start popping the champagne? Not just yet. But there are some practical takeaways:
A little more breathing room
Improved confidence can make lenders, investors, and partners more open to opportunities. It doesn’t guarantee funding or growth, but it does mean conversations might be easier than they were six months ago.
A chance to revisit plans
If you put projects on ice - an equipment upgrade, hiring plans, or a new product - this could be the time to dust them off and see if conditions are now more favourable.
Think local
Confidence varies across industries and states. Look at what’s happening in your sector and region, not just the national headline number.
Stay agile
Remember, sentiment can shift quickly. Build flexibility into your plans so you can adjust if costs rise, or demand softens again.
The bottom line
For many owners, it’s less about sudden growth and more about having the confidence to take small, smart steps forward. Use this moment to review your goals, check your numbers, and think about where you want to be this time next year.
