RTTNews reports that survey results from NAB showed that Australia business confidence improved sharply in the fourth quarter, suggesting a strong rebound from the large pandemic-related hit to activity in early 2020.

The business confidence index rose 22 points to +14 from -8 in the third quarter. Confidence turned positive in all industries and strongest in retail.

At the same time, the business conditions index climbed 14 points to 9 in the fourth quarter.

The increase in business conditions was driven by an improvement in all three sub-components, with trading conditions and profitability well above average. The employment index remained negative despite recording a solid gain.

Leading indicators also improved further in the fourth quarter. Expected business conditions at the 3- and 12-month horizons rose to high levels and suggest further gains in activity over the next year.