Australian business conditions surge to record in March: survey

[SYDNEY] A measure of Australian business confidence surged to its highest on record in March as firms reported sharply increased sales, profits and employment, another sign of the country's rapid recovery from the coronavirus pandemic recession.

National Australia Bank's index of business conditions jumped 8 points to +25 in March, with strength reported across most sectors and regions.

The survey's measure of confidence eased 3 points, but was still relatively upbeat at +15.

"Businesses are telling us activity continues to increase at a very healthy rate as we have moved past the rebound phase in activity with the earlier removal of pandemic-related restrictions," said NAB chief economist Alan Oster.

"Overall, the recovery over the last year has been much more rapid than anyone could have forecast."

A brief coronavirus lockdown in Brisbane seemed to have no lasting impact, with conditions in Queensland up strongly.

The survey's index of national sales shot up 12 points to another all-time peak of +35, while profitability rose 8 points to +26 and employment 7 points to +16.

The latter suggested the labour market was continuing its surprisingly brisk recovery, which saw the jobless rate drop to 5.8 per cent in February from a peak of 7.5 per cent last July.

Measures of capacity utilisation and investment climbed further above their pre-virus levels and their long-run averages.

"It suggests that there may be a lift in business investment and hiring as the underlying pace of growth appears relatively healthy," said Mr Oster.

A separate survey from ANZ out Tuesday showed its consumer confidence index surged 5.9 per cent last week to its highest since late 2019, partly a reaction to the ending of the Brisbane lockdown and partly to news of a planned travel bubble with New Zealand.

REUTERS