Confidence bounce

AN index measuring business confidence has spiked despite conditions continuing to wane and the retail sector being “clearly in recession”, analysts say. National Australia Bank’s business confidence index, based on a monthly survey of about 550 companies, has gained 7 points for May to a positive reading of seven. The bounce was likely because of the election and in anticipation of rate cuts, NAB researchers said. But its index of business conditions dropped by 2 points to 1 point, as NAB noted conditions in the retail sector were now at the same levels as during the global financial crisis.