BUSINESS CONFIDENCE IN AUSTRALIA AT SEVEN-YEAR HIGH

MELBOURNE, Oct 27 (Bernama) -- Business confidence in Australia jumped to a
seven-year high in the September quarter, as the "remarkable turnaround" seen
since sentiment bottomed in early 2009 continued.

Business conditions also continued to improve, although at a more subdued
pace.

The National Australia Bank (NAB) monthly survey of business confidence grew
by 20 points to plus-16 points in the three months to September, to levels last
seen in early 2002.

"Business confidence in the third quarter jumped sharply," NAB group chief
economist Alan Oster said in statement.

"New data in this survey point to a significant jump in both near and long
term business expectations -- with longer term expectations, in particular,
returning to around long run average levels." Oster said.

"But in marked contrast, investment intentions remain very subdued,
consistent with little real increase in capital spending over the next year," he
said.

NAB's business conditions index grew 14 points to plus-five points, as
trading and profitability, and to a lesser extent employment, improved.

The third quarter readings compared to a confidence index of minus-four
points in the June quarter and a business conditions index of minus-nine.

The survey also showed that business profit expectations had returned to
levels last seen in the first quarter of 2008, while employment confidence had
returned to pre-global financial crisis levels.
-- BERNAMA