Business confidence on the Coast and Highlands has continued to slip according to the latest Sensis Business Index.
Overall, small business recorded a 3 point drop on the previous quarter (to a net score of +34), with confidence still down on metropolitan areas.
Sensis CEO, John Allen, says a number of factors are driving the softer outlook.
"New South Wales business confidence has dropped to its lowest level since September 2015", Mr Allen said.
"This latest result places NSW businesses behind the ACT, Tasmania and Victoria", he said.