NAB Survey Shows Australian Business Confidence Climbs While Conditions Cool

Australia’s business mood improved in July even as operating conditions softened, according to the National Australia Bank’s monthly survey released Tuesday. The headline Business Confidence Index rose to 7 from 5 in June, marking its highest reading since earlier this year and suggesting that firms are becoming more optimistic about the economic outlook. By contrast, the survey’s Business Conditions Index slipped to 5 from 9, indicating a moderation in trading, profitability and employment metrics. Economists monitor the twin measures for clues on corporate investment and hiring plans; the divergence signals that while sentiment is recovering, firms are still experiencing uneven demand on the ground.