What is Business Confidence?

In any economy, confidence levels influence and provide information on social and financial developments in the future. For companies and the stock market, business confidence indicates expectations of firms, based upon surveys on production, orders, and finished goods in the sector. The business confidence index can also be used to check growth and anticipate curves in economic activity.

 

Around the world, numbers above 100 suggest optimism in near business performance, whereas numbers below 100 show pessimism. English economist John Maynard Keynes coined the term "animal spirits" to describe the up and downs of confidence among investors and businesses. Companies are asked