MELBOURNE - AUSTRALIAN business confidence has bounced back to its highest level since the global financial crisis, according to a survey released on Tuesday.

Confidence rose six points from -2 to +4 in June, the first positive reading since December 2007, the monthly National Australia Bank (NAB) survey found.

A positive reading indicates that optimists outnumber pessimists among the 405 firms surveyed.

NAB chief economist Alan Oster said the rise was accompanied by increased business activity, including sharp improvements in manufacturing, construction and wholesaling.

'Business conditions appear to have rebounded to a level roughly similar to that reported prior to the collapse of (US investment bank) Lehman Brothers in September 2008 and the near global meltdown in activity that ensued,' he said.

Mr Oster said businesses had also reported improved profits, which appeared to be having a positive impact on the labour market.

'The survey suggests that the better trading and profits has seen business significantly slow the rate of labour shedding,' he said.

Mr Oster said the better-than-expected results stemmed partly from government stimulus packages worth more than A$50 billion (S$57 billion) that have been pumped into the economy since late last year.

But he was also circumspect.

'Overall, we are still very much in the camp that, however welcome the current strength might be, it will not be able to be sustained,' he said. -- AFP