Australian business confidence jumped back into positive territory for the first time since December 2007 in June, driven by improving sentiment in manufacturing and finance, while business conditions also continued to surge, a survey showed.
According to a monthly survey by National Australia Bank, business confidence rose 6 points in June from May to a reading of 4 points, its first positive reading since December 2007. Business conditions rose 12 points on-month to minus 2 points, NAB said.
NAB chief economist Alan Oster said business outcomes now appear to be reflecting the broader improvement in confidence seen in the past few months. "Until this survey, actual outcomes have been much less buoyant and indeed had continued to fall," Oster said.
"The June survey, however, suggests that improved confidence has now been reflected in better business outcomes. All component indexes in the conditions index rose significantly.
Oster said sharp improvements in the manufacturing, construction and wholesale sectors have probably been helped by increased government stimulus spending and the extension of first home buyer grants, while a thawing in global financial markets has helped the finance sector.
Meanwhile, the labour market component of the index rose 18 points to minus 7 in June, its largest monthly movement in the survey's history.