Canberrra’s stimulus packs a punch

The Federal government’s stimulatory package seems to be sustaining trade and profits.

This shows up in the results of the National Australia Bank’s latest business survey, which have just been releaed.

The survey showed that business confidence and conditions bounced in the December quarter, rising 10 and 11 per cent respectively.

But the bank warned also that the survey still implied no economic growth at all in the December quarter.

And it reported that forward orders and employment both remained stuck at 1991 lows.

However there was good news in the survey results, too.

Specifically, they showed that credit is now at least a little easier to obtain than it was immediately after the global economic collapse last September.

And labour costs were flat.

NAB economist Alan Oster said this was the first time that had happened since the bank started its monthly surveys.

Mr Oster warned, too, that the NAB now expects Australia’s unemployment rate to rise from its present level of 4.5 per cent to 7 per cent, by next year.

The NAB said the government’s stimulatory package had encouraged Australians to shop, io the weeks before Christmas.

However it warned that the measures the government has announced so far will have only a temporary effect on the Australian economy.