The Roy Morgan Business Confidence index rose strongly in September, but is still below its five-year average and lower than 12 months ago.

Norman Morris, Industry Communications Director of Roy Morgan Research said on Friday: “It is not surprising that Roy Morgan Business Confidence increased in September given the change of Prime Minister and the relative lack of bad economic news during the month.

“In the three weeks before Malcolm Turnbull was elected by the party-room as PM, Roy Morgan Business Confidence was 104.2, and over the three weeks after it has averaged 115.5.”

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A prolonged surge in business confidence is not yet certain – consumer confidence bounced higher in the week after Malcolm Turnbull became PM, but fell in the two subsequent survey weeks.

Morris added: “The challenge for the Federal Government now is not only to maintain the current level of confidence, but to increase as it is still below the five year average and 17.2 per cent below what it was after the [Coalition] government came to power.”