SMALL to medium businesses in the territory reported a 24 per cent decrease in business confidence compared to the previous quarter, according to a June Sensis Business Index released today.

The quarterly survey, of 1800 businesses across Australia, found that small to medium businesses in the ACT were currently facing problems with a lack of work or sales and economic conditions, and that a decrease in business was the main issue impacting business confidence.

But the report also found an increase in employment and wages in the past quarter, against a backdrop of falling sales, profitability, prices and capital expenditure.

ACT small businesses reported a five percentage point increase in employment in the past quarter, which rose from net -6 per cent to -1 per cent, and a one percentage point increase in wages.

This was balanced by businesses reporting a 12 percentage point fall in the sales indicator, a 10 percentage point fall in capital expenditure investment and a 13 percentage point fall in the profitability indicator.

Businesses in Western Australia recorded the strongest overall confidence, followed by NSW, Victoria and the Northern Territory, with Tasmania recording the largest increase in the past quarter. Queensland also recorded an increase in confidence although it remains one of the least confident states alongside South Australia and the ACT.