Australia Investment Outlook Positive

Australian business conditions remained buoyant in December with both profits and sales healthy, while a pickup in confidence was positive for the investment outlook, a survey reported on Tuesday, Reuters reported. National Australia Bank’s index of business conditions held steady at a seasonally adjusted +13 in December, staying well above the long-run average of +5. The survey’s measure of profitability ticked up a point to +15 in December, while its sales index rose a point to +18. Its often volatile measure of business confidence bounced 4 points to +11, the highest reading since July. “This has helped to narrow the perplexing gap between business conditions and confidence evident over the past couple of years, and is an encouraging signal for investment,” said NAB group chief economist Alan Oster. NAB’s survey of more than 400 firms had also been running much hotter than measures of household confidence, though that has changed in the past month or so with the consumer mood brightening amid strong jobs growth.