Business confidence grows in Australia: Survey

Confidence to pursue business in Australia surged to its highest level in more than two years in August, reflecting an expectation from the change in political leadership and hinting at certainty about the future policy framework, according to a leading survey released Tuesday.

The National Australia Bank (NAB) monthly business survey conducted prior to the Sep 7 federal election showed business confidence rose nine points in August to six, the highest level since May 2011, up from minus three in July, reports Xinhua.

NAB said the survey showed Australia's business confidence strengthened considerably in August.

NAB chief economist Alan Oster said, while the August rate cut and lower Australian dollar may have helped sentiment, "it appears more important were political factors".

"The confidence is now only back to average levels and much will depend on whether the current bounce is maintained or erodes away in the face of poor business conditions," Oster said.

The survey showed business conditions in Australia improved marginally in August but remained subdued, with the index lifting one point to minus six.

"In the month, conditions strengthened in manufacturing, with the lower Australian dollar providing a boost to exports," Oster said.