The survey is conducted by the State's peak business organisation, the NSW Business Chamber.

The region’s profit index was the highest in the State at 8.6 points, up from -22.0 in December with one-third of respondents reporting increased profits for the March quarter. 

Businesses also reported a significant improvement in operating costs with the index decreasing from 65.9 in December to 32.9 points.

Mid North Coast NSW Business Chamber regional manager Kellon Beard said energy costs, still a major concern with 50 percent of businesses surveyed, highlighted it as a key cost control priority.

“Although business operators remain upbeat about their prospects, and the economic outlook for the year ahead, profitability and growth are being constrained by the continued decline in energy affordability, business operating costs and skill shortages,” Mr Beard said.

“Reducing the burden of payroll tax on small business is key to driving investment in capital and increasing jobs growth, but we also need to do more to provide our young people with better and more targeted training so that they can secure employment."

SkillsLink Training's Valerieanne Byrnes agreed that business operating costs are increasing.

"It is really hard to contain those costs too," she said.

"For our business – we operate on Hastings River Dr – the current road works has also upset our parking options, which is bad for our customer base.

"But broadly speaking, this year has been positive and we have some good potential going forward."

SkillsLink Training operates in the education sector, an historically slow starter in the first quarter.

"That's due to the long term school break, so we don't get cracking until February, before building to the latter part of quarter three."

To break the historic sluggish start to the new year, Ms Byrnes said SkillsLink Training had looked for more opportunities.

"Our operations identified some opportunities to diversify which has helped us pick up on short term, punchy-type programs which attract more youth," she said.

"We also saw some indicators through last year for expansion and this will be kicking off with plans to expand into Wauchope."

Mr Beard said businesses from the Mid North Coast also reported increased staffing levels with index improving to 7.8 points, up from 4.8 in the previous quarter. 

The capital spending and sales revenue indices decreased from the previous quarter but remained in positive territory, he said.