A measure of Australian business conditions jumped to its highest in more than 2-1/2 years in December as sales and profitability improved markedly, while confidence held steady at long-run average levels, a survey found on Tuesday.
National Australia Bank’s survey of more than 400 firms found the surprising turn in conditions was underpinned by a low interest rate environment, higher asset prices and a softer Australian dollar.
The report’s index of business conditions rose 7 points to +4 in December, with its measure of sales and profitability both surging 10 points. The employment measure also improved but still implied a flat labour market.
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