By Anhar Khanbhai

The political wrangles within the Labor government has affected consumer confidence and affected the economic management of the country according to Australia's business leaders.

Business bosses called for an urgent resolution to the leadership saga in the face of a tough global economy and high Australian dollar.

Myer chief executive Bernie Brookes criticized the nation's leaders for ''poor economic management''.

''All of our politicians have diverted their attention and energy in the past few weeks to a potential leadership challenge rather than running the country,'' he said.

''I could not imagine a board or a business putting up with continual diversion from the economy, the consumer, raising taxes and running the country, to less important things.''

Rudd acknowledged last night the affair was becoming a distraction for business and investors.

''It is important that business confidence is maintained. The economy and jobs are core to what any responsible government is about,'' he said.

Business leaders have previously said the relationship with the government and industry had plumbed lows.

Aussie Home Loans executive chairman John Symond called for a fresh election, saying Labor has governed ''appallingly'' since taking office.

''Both Rudd and Gillard have been awful leaders allowing poor policy for the sake of self interest,'' Symond said.

The chief executive of national book retailer Dymocks, Don Grover, said government instability was a problem for business.

''It sends the wrong message of confidence to consumers; they've got enough to worry about the global economic conditions that impact on Australia.

''Reform is continuing to be at risk - we've got a government that's unfortunately too busy infighting and not focused enough on the reforms that the country needs.”