Business index hits a new high

AUSTRALIAN businesses are enjoying the most favourable conditions in at least 20 years, according to National Australia Bank’s index of business conditions.

But a pullback is possible as leading indicators soften and confidence levels lag, according to NAB chief economist Alan Oster.

The NAB index of business conditions clocked in at 21.1 points for October — the highest since the monthly series started, and about four times the long-term average.