SYDNEY : A measure of Australian business confidence rebounded in July as sales and profits held up surprisingly well in the face of rising interest rates and high inflation, though firms also reported record costs amid supply constraints.
"The strength in conditions remained broad-based across states and industries, with a notable pickup in the construction sector," said NAB group chief economist Alan Oster. Surging inflation has led the Reserve Bank of Australia to hike four times since early May, lifting rates by 175 basis points to 1.85 per cent and warning of yet more ahead.
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