Confidence among Australian top 300 listed companies fell at the beginning of the year, especially among large construction and mining firms.
A National Australia Bank survey of Australia's top 300 listed companies found confidence levels fell to minus five points in the March quarter.
Mining-related construction companies were particularly gloomy, with confidence levels falling to minus 37 points.
"Surprisingly, conditions are down heavily in recreational and personal services, offsetting gains in transport, utilities, finance, property and business," NAB group chief economist Alan Oster said.
Measures of profitability among the top 300 companies and their capital expenditure plans were also lower.
Export orders among the 300 also fell, despite the fall in the Australian dollar at the start of 2014.
Mr Oster said the overall outlook for business conditions among Australia's largest firms during the next three to 12 months had softened.
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