Wednesday, July 29, 2009

Australian business confidence rises to pre-economic crisis levelsAustralian business confidence rises to pre-economic crisis levels

Australian business confidence rose in the second quarter to pre-financial crisis levels, a survey released Tuesday said.

The National Australia Bank's survey for the three months to June rose 20 index points to minus four points, from minus 24 points at the end of the previous quarter.

It was the highest reading since before the collapse of U.S. investment bank Lehman Brothers, which filed for bankruptcy protection in September after suffering massive credit losses.

But the below-zero reading shows there are still more pessimists than optimists among the companies surveyed.

The survey also showed business conditions rose 11 index points to minus-nine points, mainly due to better trading and profits.

The bank said that while fears of an economic "Armageddon" have evaporated, expectations for business conditions over the next 12 months are still the lowest since June 1991.

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