Australian business conditions climbed to its highest since early 2008 in August

The National Australia Bank's survey of more than 400 firms showed its index of business conditions firmed 1 point to +15 in August, triple its long-run average of +5 and the highest since early 2008. Meanwhile, Australia's business confidence index fell to 5 in August vs. 12 in July.

Key points

There was a notable jump in employment for August - to near record highs

If employment conditions maintain these levels, that should see more than sufficient jobs creation to push the unemployment rate lower

Measure of sales edged back a point in August to a still strong +18, while business profits also dipped a point to +15

The forward orders index rose slightly to an above-average +4 points

Firms reported some acceleration in labour and purchase costs from low levels

Retail prices slipped into negative territory