The 2014 March quarter NAB Quarterly ASX 300 Business Survey showed business conditions for the ASX 300 increased to +12 in the March quarter, up from +11 points in the previous quarter.
The results indicated recreational services increased the most, generating the highest level of conditions since the fourth quarter of 2012, rising from a recording of zero in the last quarter of 2013 up to +44 this quarter.
NAB said this improvement was the result of better conditions in trading and employment.
The survey found the only two industries recording negative business conditions within the ASX 300 were construction and mining, with construction declining 45 points down to -56 index points and mining conditions falling to -16 from -7 in the previous quarter.
The results showed business confidence for the ASX 300 also accelerated rising to a reading of +11 from +1 in the previous quarter, the highest level in the three-year history of the survey.
The survey indicated confidence also increased for the wider economy but less significantly, increasing from +7 to +9 in the March quarter.
According to the NAB Quarterly SME Survey, business confidence dropped for SMEs for the first time in the March quarter, dropping four points to +6 index points.
The survey showed SME business conditions improved, however, increasing 3 points to +3 points, the highest level since mid-2010.
The ASX 300 Business Survey found a majority of industries outside the ASX 300 experienced a decline in business conditions, with the NAB QBS Index reading falling from the +1 reading in the fourth quarter of 2013 down to -1 for the March quarter.
This decline was mainly driven by the mining, wholesale, services, construction and manufacturing industries.
The weaker conditions in the broader economy were mostly the result of marginally lower trading conditions, profitability and employment, with trading conditions falling from +6 from the fourth quarter of 2013 down to +4 this quarter, profitability dropping from +1 to -2, and employment falling from -4 to -5.
NAB expects, however, that business conditions for the broader economy will improve for a majority of industries during the next quarter.
