12.04.202205:42:00UTC+00Australia NAB Business Conditions, Confidence Improve In March

Australia business conditions and confidence improved in March, survey results from NAB showed on Tuesday.

The business conditions index doubled to 18 in March from 9 in the previous month. This was the largest one-month jump since June 2020.

The business confidence index climbed three points to 16 in March, continuing the steady growth seen since December.

Trading conditions and profitability strengthened sharply in March. Employment also improved.

Alan Oster, NAB Group chief economist, said businesses reported very strong trading conditions and a sharp rise in profitability, which indicates demand is continuing to hold up as the economy rebounds from Omicron and growth gathers momentum.

Costs are growing at record rates in the history of the survey, Oster noted. Although survey price measures differ from the official measures in important ways, a very strong inflation is expected for the first quarter and likely in the second quarter, the economist said.