The insurance and finance sector’s confidence fell 18 points to +40 on the Sensis Business Index in the September quarter, weighed down by concerns about tougher operating conditions.

The value remains above the national all-sector average of +38, despite the decline compared with the preceding quarter.

“Falling sales and an unfavourable business environment are the biggest concerns,” Sensis says of the insurance and finance sector. “Despite this, confidence remains above the national average. Being an established, solid business was the most common reason for confidence, followed by having an optimistic attitude.”

The sector’s expectations for sales stand at +27, profitability +23, prices +18, wages +17 and employment +9.

The overall confidence reading of +38 is down six points from the June quarter, but up 11 points on the corresponding period last year.

“There is strength in the results when you look further ahead,” Sensis CEO John Allan said.

“Expectations for the economy in one year… have improved and are now in positive territory for the first time since December last year.”

Sensis’ survey is based on phone interviews with 1000 small and medium businesses from 10 sectors, including 66 from the finance and insurance sector.