Australia’s business conditions reached historic high in April
Australia saw its business conditions reach a new high last month, with sales, profits, and employment all succeeding.
A survey released by the National Australia Bank saw business conditions jump by 6 points in April, hitting +21.
The reading equalises the highest ever record, dated in 1997. The nation has also scored well above its average of +5.5.
“The business conditions index printed at +21 in April, up 6pts on last month, to be at the equal highest level since the monthly survey began in March 1997 (and equalling the highest level since 1994 in the quarterly survey),” the report notes.
In terms of profitability, the survey showed that it has gained 6 points, reaching +22.
Sales grew by 7 points to +28, with employment earning an additional 4 points to +13, according to the bank.
“Business confidence rose by 2pts to +10, a well above average level, albeit trailing the strength in conditions.”
“As with conditions, business confidence has improved over the last couple of years, lifting from +5.5 in 2016, to +9 over 2017 H1, to +10 since last October.”
“This mirrors the lift in confidence globally, as world growth accelerated to the strongest pace since 2011.”
“The strength in business conditions and leading indicators suggest economic growth will strengthen and that over-time we should see strong jobs growth and falls in the unemployment rate,” remarked Alan Oster, Group Chief Economist at the National Australia Bank.