Business lifted by the 'Turnbull effect'

Businesses are starting to feel the benefit of what is being labelled the "Turnbull effect" turning around a difficult start to the year.

The Australian Chamber of Commerce and Industry business expectations survey for the September quarter - the first since Malcolm Turnbull became prime minister - found views improving on the economy for the first time in two years.

"We are starting to see the Turnbull effect filter through to business confidence, but what businesses really want to see is progress on the important problems facing Australia," the chamber's chief executive Kate Carnell said.

The challenge for the government is to boost growth through a more efficient tax system, a more flexible set of workplace regulations and a better process for selecting and funding public infrastructure.

The survey found the index for economic expectations for the next 12 months rising to 43.5 points in the September quarter from 42.9 points in the previous three months.

At the same time, the business conditions index rose to 44.1 points from 42.6 points.

However, in both cases these indexes remain below the crucial 50-point mark that separates contraction from expansion.