iscover 
A Business Sentiment Survey of more than 1,000 decision-makers conducted by financial analysis company CreditorWatch has found that more than eight in 10 businesses (82 per cent) plan to invest over the next 12 months.
Technology is the leading focus area, cited by 40 per cent of respondents, followed by marketing and customer acquisition (29 per cent), and new products and services (26 per cent).
Confidence around future growth also remains elevated. Three-quarters of business leaders (76 per cent) said they are optimistic about growth in the year ahead, with the same proportion actively exploring domestic expansion opportunities. More than half (54 per cent) are considering overseas markets.
Financial and insurance services businesses reported the highest confidence levels, with 89 per cent optimistic about growth over the next year.
This sector also recorded the strongest intent to expand locally and internationally and was the least likely to delay major investment decisions.
Younger businesses are leading the expansion push, with 84 per cent of organisations operating for less than five years pursuing local growth, compared with 65 per cent of businesses that have been operating for more than 20 years.
A cautious approach
At the same time, however, many business leaders seem to be taking a more cautious approach to large commitments in the near term.
Nearly two-thirds of business leaders (63 per cent) said they are postponing major investments until economic conditions improve, while 72 per cent reported that rising costs are restricting their ability to grow. (The inflation rate (CPI) was at 3.4 per cent in the 12 months to November 2025 and no major banks are predicting a rate cut in the near future).
Construction businesses recorded the lowest growth confidence, with 67 per cent expressing optimism. Cost pressures were more pronounced in this sector, and fewer construction businesses indicated plans to pursue local expansion.
Shifts in customer behaviour are also influencing decision making. More than four in five respondents (83 per cent) said they have experienced changes over the past year, including slower approvals, tighter budgets, longer payment terms, and increased price comparison.
Caution is evident in hiring intentions. More than four in 10 leaders (43 per cent) do not plan to hire in the next 12 months. Among those expecting to recruit, 66 per cent said they are more likely to use casual or short-term contractors rather than permanent employees (34 per cent).
CreditorWatch CEO Patrick Coghlan said the results reflect a measured response to current conditions rather than a pullback from growth.
“Business leaders are demonstrating remarkable adaptability in a challenging environment. It’s encouraging to see how many continue to feel positive about the Australian economy over the next year and how many are identifying positive indicators within their own operations,” said Coghlan.
“While leaders are pacing major expenditure, they’re certainly not standing still. They’re finding opportunities to innovate, expand and deliver value for their customers even as conditions fluctuate.”
Overall confidence, but regions vary
While overall positivity was strong nationwide, regional sentiment varied across the country.
Customer behaviour changes were most commonly reported in Tasmania, the Northern Territory, and the ACT, while hiring intentions were also highest in those states.
Appetite for local expansion was strongest in Tasmania, the NT, and the ACT and weakest in Queensland, while interest in offshore expansion was highest in NSW.
Coghlan said the findings highlight the importance of recognising regional differences.
“The regional differences in this survey make it clear that a one-size-fits-all approach won’t work,” Coghlan said.
“From Queensland to Western Australia, every market has its own dynamics. Sustainable growth depends on understanding and supporting these local realities. Our most recent Business Risk Index shows that NSW, Queensland and Victoria have been experiencing the highest business failure rates across the country – which underscores how markedly conditions differ between states.”
The findings come after a recent Broker Pulse report of commercial lending by Agile Market Intelligence revealed strong demand for business loans, commercial mortgages, and equipment or asset finance in the final quarter of 2025 via the broker channel.
[Related: Weather shocks bite, but agriculture remains resilient]