Businesses are more confident about their own outlook and the broader economy, ANZ's monthly survey has found.
A net 32 per cent expect their own activity to increase over the year ahead, up from a net 26 per cent last month, while a net 26 per cent expect general business conditions to improve, up from 17 per cent last time.
"We normally feel perkier heading into the festive season," ANZ chief economist Cameron Bagrie said, "though stripping out the mild seasonal pattern still shows a modest lift."
He attributed the rise in confidence to a combination of increasing activity in the housing market, rising commodity prices, a rising sharemarket, global ructions remaining in recess, and reduced wage pressure which bodes well for a long period of low interest rates.