Australia business index hits new high in October

Sydney

A MEASURE of Australian business conditions boasted the biggest increase on record in October as firms reported stronger sales, profits and employment, a possible sign the economy was gaining momentum into the last quarter of the year.

National Australia Bank's survey of more than 400 firms showed its index of business conditions surged to +13 in October, from just +1 in September. This was the largest monthly gain since the survey began in 1998 and took the index to its highest since early 2008. Oddly, however, the survey's measure of business confidence actually dipped a point in the month to stand at +4, perhaps because firms were uncertain whether the better times would be sustained.