Australian businesses are more confident in economy than before the crisis

The National Australia Bank business survey for the June quarter showed that business confidence soared up to a level not seen since the start of the global financial crisis, and business conditions had improved during the period.

Thus, NAB's business confidence index rose 20 index points to minus-four points, from minus-24 points at the end of the first quarter, its best result since prior to the collapse of US investment bank Lehman Brothers. And the business conditions index rose 11 index points to minus-nine points, from minus-20 points, mainly due to better trading and profit outcomes.

In addition, NAB said while job shedding by business had eased in the second quarter, it was still high. The survey implied a return to moderate growth in the second quarter, although this was likely to be temporary.

NAB continues to expect Australia's national gross domestic product will have contracted by 0.5 % in calendar 2009. According to the first quarter GDP report, the economy expanded by 0.4 % for an annual growth rate of rise of 0.4 over the year, which was stronger than financial markets had expected.