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SYDNEY - Australian business conditions slipped a bit but remained strong in the past quarter, a survey showed yesterday, buoyed by strong demand and a tight job market while optimism about the current quarter was robust.
The quarterly survey of companies by National Australia Bank (NAB) showed the business conditions index down by only one point to 18 due to some easing in profitability.
"The main message from the more comprehensive quarterly business survey for the September quarter is that business activity remains at very robust levels," said Alan Oster, NAB's group chief economist.
"Together with the rapid growth in public sector spending - and that is unlikely to slow any time soon given the Federal election announcements by both major parties to date, as well as budgeted state spending - total domestic demand looks to have continued at the 5 per cent rate in the year to the September quarter."
Trailing in the polls ahead of a national election on November 24, conservative Prime Minister John Howard has pledged billions of dollars in tax cuts and spending plans.
Opposition Labor leader Kevin Rudd has been almost as generous in his campaign pledges.
The NAB survey found businesses were slightly less confident about the future, possibly reflecting concerns about a rise in interest rates next week.
- Reuters
