A record low level of business confidence has prompted the federal opposition to say Australia is facing an economic leadership crisis.
The latest quarterly Sensis Business Index shows business confidence has fallen to the lowest level in the survey's 15-year history.
Since May, four out of every 10 businesses had cut their workforce because of a slowing economy.
Opposition treasury spokesman Malcolm Turnbull said the survey result showed business had no confidence in the economic leadership of the federal government.
"It shows that small business confidence,in the Rudd government has collapsed to the lowest level ever," he told reporters.
"The Rudd government is now the one government in Australia in which small business has the least confidence."
Australia was facing "a crisis of leadership".
"They have relentlessly - (Teasurer) Mr (Wayne) Swan and (Prime Minister) Mr (Kevin) Rudd - talked up inflation and talked down the economy.
"They have undermined confidence and they have undermined prospects for jobs, prospects for business and prosperity."
