13-Oct-2010 8:01 AM

Australia's business confidence stays near four-month high

Australia's National Australian Bank stated Australian business confidence in Sep-2010 remained near a four-month high with conditions improving in the mining and transport industries as the resources boom positively impacts the nation’s economy (Bloomberg, 12-Oct-2010). The confidence index slipped from 11 in Aug-2010 to 10, while the business conditions gauge, a measure of hiring, sales and profits, rose from 5 in Aug-2010 to 7. The bank added that the Reserve Bank of Australia before the end of the year would likely boost the benchmark lending rate, currently at 4.5%, to 5.5% by 3Q2011.