There has been a surprise jump in business confidence, despite almost all the major indicators showing Australia's economy is deteriorating.
Two surveys released today reveal businesses think the change of government and the falling Australian dollar will deliver stability and growth this year.
More than 600 business surveyed by National Australia Bank have displayed a surprising level of optimism about the months ahead.
NAB chief economist Alan Oster says the monthly confidence index increased by sixth-highest ever level in August.
"In net terms it's gone from -3 to 6," he said.
Business were quizzed about their hopes for the economy during the days leading up to Saturday's federal election.
Mr Oster believes political renewal often inspires optimism, but not usually on this scale.
"We haven't seen this kind of behaviour before," he said.
But while businesses have high hopes for the future, they told NAB sales were sluggish in August.
And Westpac economist Justin Smirk says employers are still holding off on hiring and investing.
"Business is really just a sentiment thing, and what really matters is underlying business conditions," he said.
"You may get a bounce in confidence, as firms have been hesitant to step back into the market. But whether it continues and makes a real difference, or whether it's just filling in a hole, it the key thing."
Mr Smirk domestic growth cannot accelerate until the Australian dollar falls in value. But another survey released by Citi today shows falling Australian dollar is already boosting confidence among exporters.
Citi's Scott Southall says companies are forecasting much higher export volumes this year.
"We're seeing it across all segments, but the most significant increases have been among the larger exporters.
Mr Southall says confidence of exporters, of course, relies on the Australian dollar continuing its decline.
It has edged up in past few weeks, and at 6pm (AEST) was buying around 92.46 US cents.
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