Business confidence remains high, with firms upbeat about the prospects for their own operations.
The ANZ Bank's latest monthly business confidence survey shows a net 42% of firms expect business conditions to improve over the next year, up 10 points compared with April.
And a third of respondents expect their own prospects to get better.
Profit expectations are at an almost two-year high, which the bank says is a good sign for employment and investment.
The bank's combined composite growth indicator, which combines business and consumer confidence, is signalling a 3.7% growth by the end of the year.
