Business confidence refers to the level of optimism or pessimism that business leaders feel about the future economic environment. It influences their decisions on investments, hiring, and expansion. High business confidence often leads to increased spending and growth, while low confidence can result in cutbacks and a slowdown in economic activity. Factors affecting business confidence include economic indicators, government policies, and global events. Surveys, such as the Business Confidence Index, are commonly used to gauge this sentiment. Understanding business confidence helps economists and policymakers predict economic trends and make informed decisions.