Business confidence

Business confidence refers to the overall outlook and feelings of companies about the economy and their own prospects. When businesses are confident, they believe the economy is strong and expect good sales, investments, and growth, leading them to expand activities. Conversely, low confidence suggests uncertainty or concern about economic conditions, causing companies to hold back on spending and hiring. This sentiment influences economic growth, as widespread confidence can boost investment and employment, while doubt may slow economic activity. Essentially, business confidence acts as a gauge of how optimistic or cautious companies are about the future.