Australian business conditions soared to the highest level in a decade and business confidence surged, pointing to a likely acceleration in economic growth, according to the latest NAB monthly business survey.
TheA monthly survey of more than 400 firms showed business conditions, which measures hiring, sales and profits, climbed 2 points to +14 in April, well above the long-run average of +5.
The survey’s measure of business confidence more than doubled to +13, the highest level in seven years, from +6 in March.
The positive sentiment comes close on the heels of the Reserve Bank of Australia lifting its 2018 economic growth forecast. On Friday, the RBA estimated GDP will rise between 2.75% and 3.75% in 2018, up from 2.5% to 3.5% previously.
“The survey points to an ongoing improvement in employment conditions, which is a trend that is critical to the likely path of the Reserve Bank of Australia’s cash rate,” NAB Chief Economist Alan Oster said. “Consequently, we remain confident in our outlook for economic growth to accelerate in the second half of 2017.”