Australian business confidence returns to pre-financial crisis levels

Australian business confidence in the September quarter rose to levels that have not been seen since the pre-global financial crisis days of 2007, a survey found on Tuesday.

The National Australia Bank (NAB) quarterly business survey showed business confidence climbed six points to nine points despite business conditions fell one index point to five in the September quarter.

A reading above zero indicates optimists outweigh pessimists.

The NAB quarterly business survey found the increase in business confidence was broad-based, with transport and property services the strongest and recreation having the weakest confidence.

The survey also found business conditions fell in the mining and finance sectors, and were weakest in retail, wholesale and agribusiness.

Conditions were strongest in the transport and recreation sectors, the report said.

NAB chief economist Alan Oster said the first home buyers grant reduction caused a sharp fall in business conditions for the property sector.

At the beginning of 2010, the first home buyers grant from Australian government was reduced to 7,000 AU dollars (6,942 U.S. dollar) after having been reduced from 14,000 AU dollars (13,884 U. S. dollars) to 10,500 AU dollars (10,413 U.S. dollars) in October last year.

In the survey, business plans on capital spending for the next 12 months had a modest increase in the September quarter.

Source:Xinhua