Sensis, which compiles the annual survey, credits the turnaround to "healthy sales and strong results in prices, employment and wages" in the ACT in 2015.

But across the nation, the White Pages publisher found business confidence on the floor, with most firms saying they thought the economy was shrinking or standing still and only 13 per cent banking on economic growth.

The index, compiled from a survey of 1000 businesses across the country, found confidence among small and medium businesses (SMBs) in the ACT on the up, with their net confidence measure the highest in the country.

In November 2014 the territory recorded the lowest score of all the states and territories on this figure.

Confident SMBs pointed to having an established and solid business, healthy sales and specific business strengths.

"Interestingly, sales and profitability were weaker last quarter but there was growth in prices, employment and wages," Sensis noted in its report.

"Expectations by SMBs in the ACT for this quarter remain positive, with sales improvement anticipated and profitability still relatively strong on a net balance basis."

The survey found support for ACT government policies among SMBs remained low, with the biggest gripes about the perceived favouring of big business and a lack of incentives for small business.

Sensis chief executive officer John Allan said business confidence in Canberra had turned around in the past 12 months.

"Canberra is now the most confident region after being the least confident in November 2014," Mr Allan said.

"Driving the turnaround has been healthy sales and strong results in prices, employment and wages."

At the national level, perceptions of the economy among small and medium businesses dropped four points, to a level not seen since May 2014, with negative scores registered in every state and territory.

The number of businesses who spontaneously mentioned the economic climate as a key concern doubled this quarter, from 7 per cent to 14 per cent.

"Given recent events on global stock markets and with Australian unemployment on the rise, it is not surprising to see that only 13 per cent of businesses think the economy is growing," Mr Allan said.

The number of businesses trying to access finance was up from 11 per cent to 17 per cent, with the proportion having difficulty raising capital jumping from 15 per cent to 22 per cent, according to the survey.

While the ACT was found to be the most confident location, South Australia was the least buoyant.

The Northern Territory, Tasmania, Victoria and Western Australia also experienced drops in confidence, while optimism improved in Queensland and NSW.