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27.01.202104:54:00UTC+00Australia's Business Conditions Strongest Since Late 2018

Australia's business conditions climbed further in December to reach its highest level since late 2018, signaling a strong momentum in the economic recovery, survey results from the National Australia Bank showed Wednesday.

The business conditions index came in at 14, the highest since September 2018, and above November's score of 7.

Meanwhile, the business confidence index fell to 4 in December from 13 in November. This likely reflects the impact of the Sydney Covid-19 outbreak through December.

The employment conditions index was back in positive territory for the first time since the start of the pandemic. The index for trading climbed 5 points, while profitability edged down 2 points. Nonetheless, all three sub-indices were above average, for the first time since early 2019.

Capacity utilization returned to around pre-virus levels, rising to 80.9 percent from 79.1 percent in December, following the further gains in businesses conditions. At the same time, forward orders and capex remained subdued.

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