Business expectations for the economic outlook have improved for the first time in two years in what is being labelled the “Turnbull effect”.

The Australian Chamber of Commerce and Industry business expectations survey for the September quarter – the first since Malcolm Turnbull became Prime Minister – also found conditions improving for the first time in a year, although in both cases these indexes sit below the neutral level of 50 points.

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“We are starting to see the ‘Turnbull effect’ filter through to business confidence, but what businesses really want to see is progress on the important problems facing Australia,” the chamber’s chief executive Kate Carnell says.

Both business confidence and consumer confidence fell sharply in the first half of 2014, following unexpected spending cuts and other policy announcements in the 2014/15 federal budget.

CEO of the Council of Small Business of Australia, Peter Strong, said his members were “definitely more upbeat” since the Turnbull government was formed, though were initially “worried that the big end of town would get all of the government’s attention”.

He added that early discussions with incoming small business minister Kelly O’Dwyer has been “really good”, in part offsetting the SME sector’s disappointment that O’Dwyer has to juggle the role with her other portfolio of Parliamentary Secretary to the Treasurer.

Previously, a full-time minister – Bruce Billson – had been dedicated to the small business portfolio.