Australia is enjoying far more positive levels of business sentiment than it has for some time, with the last two months having seen real improvements in this area, according to one of the nation's most prominent politicians.
Australian treasury secretary John Fraser said he could sense an improvement in Australia’s business conditions, telling a Senate hearing that there has been some sort of pick up in conditions for some time, with the last two months in particular really helping to show this off.
This was backed up by the news from the latest National Australia Bank (NAB) business sentiment survey, which showed an increase in good feeling on a strong level.
The 25-year-old survey returned real growth in sentiment in the third quarter, with this metric rising to a reading of 11, up from five in the second quarter of the year. Moving forward, for the rest of the year there was an identical jump, with people expecting to see improvements in the fourth quarter allowing the sentiment index to climb to 11 from five as well.
In the longer term, it also seems that people are feeling positive. With regards to business condition expectations across the next year, the index now sits at a level of 25, rising from 19 three months ago.
It means that the current monthly sentiment index is ten points ahead of its long term average of one, while the overall level of sentiment is now reaching its highest level since 2008, indicating that there could now be a real long lasting positive for the businesses across the nation.
The report's authors said: "The September quarter NAB Business Survey confirms the trend improvement current condition in the non-mining economy, while the outlook is also looking notably better. In contrast, confidence softened considerably although this is largely a reflection of the timing of the survey – prior to the Liberal Party leadership resolution, and at a time when emerging market concerns were particularly high."
These positives may well lead to more investment in Australia in the months to come, which can only be a positive in pushing the business sector, and the economy, further forward.