Final answer:
Business confidence indices, like the business tendency surveys published by the OECD, show the overall sentiment and outlook of businesses and indicate whether confidence is rising or falling.
Step-by-step explanation:
Business confidence indices, such as the business tendency surveys published by the Organization for Economic Development and Cooperation (OECD), provide insights into the overall sentiment and outlook of businesses in an economy. These indices are based on survey data collected from businesses on aspects like future selling prices and employment. They indicate whether confidence is rising or falling, as well as whether it is relatively high or low compared to the past. For example, during the Great Recession, business confidence sharply declined but has since risen back to long-term averages.