Bloomberg reports that Australia’s business conditions improved as sales, profitability, and employment rose. Business confidence also surged, suggesting that a recovery in the country’s corporate sector may be in line with the Reserve Bank of Australia's (RBA) easing cycle, the news agency says.
National Australia Bank revealed in a report released on Tuesday that business conditions gained 9 points and reached the highest level in over a year in June. Three components of this gauge performed strongly. Sales surged 10 points, profitability jumped 9 points, and employment rose 2 points.
The business confidence index climbed 3 points to 5, extending its gains for the third consecutive month. Additionally, capacity utilization advanced to 83.3.
National Australia Bank expects this momentum to continue in the second half of 2025. Besides, experts see the improvement in business confidence as a positive signal, especially given global economic and geopolitical uncertainty.