Business confidence hit a seven-year high in the September quarter, according to the latest NAB quarterly business survey.
NAB’s September 2009 Quarterly Business Survey revealed that business confidence jumped 20 points in the September quarter to levels last seen in 2002, while business conditions climbed 14 points with better outcomes across trading and profits.
“Since the bottom in early 2009, the remarkable turnaround in confidence has continued into [the third quarter],” NAB chief economist Alan Oster said in a statement.
New data in the survey also pointed to a significant jump in both near and long-term business expectations.
The strong rise in business confidence provides further support for the Reserve Bank of Australia (RBA) to lift the cash rate when it holds its November board meeting next Tuesday.
The NAB believes that the RBA will continue to raise interest rates, hitting 4.25 percent by March 2010 and 5.5 percent by 2011. The survey further reiterates this view, with 87 percent of businesses now expecting interest rate rises, compared to just 28 percent in the June quarter.
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