Business confidence has jumped to a 19-month high in ANZ's Business Outlook survey, but the bank's chief economist, Cameron Bagrie, is wary of false dawns.
A net 39 per cent of respondents expect the general business situation to improve over the year ahead, up from a net 23 per cent in the previous survey in December.
Firms' expectations of their own activity, a more reliable indicator, has also strengthened, a net 38 per cent expecting improvement compared with a net 31 per cent previously.
Profit expectations and investment and hiring intentions have also improved, though export expectations are weaker and remain well below the historical average.