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SYDNEY: Australian business confidence has shot up to a near seven-year high after the economy's strong performance in the global downturn, a survey said on Tuesday.
National Australia Bank's (NAB) quarterly survey showed a 20-point leap to positive 16, the highest level since early 2002, meaning optimists outweigh pessimists by 16 per cent.
However, capital expenditure plans showed just a six-point rise to positive eight, indicating only lukewarm intentions to invest.
"This divergence has very important growth implications and puts a real note of caution against overly optimistic growth expectations," NAB said.
"Thus, while business capital plans have improved from the 'Armageddon' levels of early 2009, they still imply little to no growth in investment over the next six to 12 months."
Australia is due to release quarterly inflation figures on Wednesday as the central bank ponders another rate rise from 3.25 per cent to keep the economy from overheating.
This month Australia became the first G20 country to raise interest rates in the wake of the worst worldwide slump since the Great Depression.
- AFP/yb
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