Confidence levels up according to latest surveys.

 

Business confidence levels have bounced back to pre-pandemic levels in the wake of the re-opening of state borders. 

 

Trading, profitability and forward orders all surged for businesses sending confidence higher in every state and territory led by large gains in Victoria and NSW. Conditions rose in all industries, except wholesale, according to the latest NAB business survey.

 

NAB chief economist Alan Oster said the improvement in business conditions was being driven by the re-opening of Victoria although all states were seeing gains.

 

However, he said the measure of employment remained in negative territory with no lift in November.

 

"While activity is picking up as the economy re-opens, businesses are yet to move back into hiring mode. This is not completely surprising with the labour market often lagging developments in activity, so we will keep closely watching this measure," he said.

 

The NAB survey was taken in the last week of November, indicating that Victoria's re-opening and the Reserve Bank's cutting of the official interest rate to 0.10 per cent and $100 billion quantitative easing program had filtered through.

 

Meantime, the weekly measure of consumer confidence by the ANZ and Roy Morgan improved by 1.8 points and is now at its highest level this year.

 

According to the Morgan survey, consumer confidence is being driven by increasing confidence about the long-term prospects for the Australian economy with more Australians saying now is a ‘good time to buy major household items’.