A 20 year high for business confidence

The latest ANZ business outlook survey has business confidence at a 20 year high. It was last this high in 1994. That is quite extraordinary when you consider how fragile the world economy still is, and the problems Australia is having.

Business confidence is at +71%. This doesn’t guarantee that the economy will grow strongly, but it does suggest that businesses will invest more money and start hiring more staff. Indeed a net 32% of business plan to hire more staff – the highest level since December 1992. In the manufacturing sector it is even higher at a net 37%.

ANZ is now talking economic growth between 4% and 6% in the next year. I think that is rather optimistic, but anything over 3% is great.