The NAB monthly business survey has shown business conditions have been pushed back to their pre-crisis levels after receiving their strongest reading since September 2008.
The June survey found business conditions rose 12 index points, aided by the Federal Government’s stimulus payments.
NAB believes the promising results have been driven by the cash handouts, investment allowance and the boosted first home owners grant.
NAB chief economist, Alan Oster, said the improved business conditions are a sign that the economy has started to grow.
However, Oster says it is still too early for optimism. The factors that helped in the short term will not be there in the second half of the year as the cash handouts vanish and the first home owners grant is wound back.
People who read this, also liked:
Consumer confidence soars
