SYDNEY (Reuters) - An index of Australian business conditions out on Tuesday stayed strong in September, with firms looking to hire more workers to meet demand in an upbeat reading on the economic outlook.
The National Australia Bank's <NAB.AX> index of business conditions edged up 1 points +15 in September, well above the long-run average of +6.
The survey's volatile measure of business confidence also rebounded 2 points to +6 in September. It had dipped in August amid political uncertainty after the ruling Liberal Party ousted former Prime Minister Malcolm Turnbull and replaced him with Treasurer Scott Morrison.
Perhaps the most promising development in September was a 2 point rise in the survey employment index to an historically high +12.
"The employment index continues to suggest growth in employment of over 20,000 per month over the next 6 months," said NAB group chief economist Alan Oster.
"This along with other labour market indicators and a stabilisation in the participation rate suggests we should see further declines in the unemployment rate over the rest of 2018 and into 2019."
The official jobless rate has been declining gradually to reach a six-year trough of 5.3 percent in August.
The survey's main measure of profitability held firm at +14 in September, while its sales index eased a point to a still-strong +18.
"The survey points to ongoing strength in business activity into the latter part of 2018 with profitability, turnover and employment at high levels," Oster noted.
"That said, the survey suggests ongoing meek price pressures despite the robust conditions in the business sector."
The Reserve Bank of Australia (RBA) has highlighted the resilience of business conditions as it forecast economic growth would top 3 percent this year and next.
Surveyed measures of inflation were subdued in September, with retail prices falling at a quarterly rate of 0.1 percent.
(Reporting by Wayne Cole)
