On the other hand, export volumes benefit from increased capacity and a lower Australian dollar partly offset by some moderation, but sustained trading partner growth during 2006-2007.
While the Australian economy continues to report sub-trend growth, the December results reinforce the point that it is still performing reasonably well. Conditions improved in December, driven by stronger-than-expected trading and profitability.
Confidence has been getting weaker for some months and trading conditions have weakened a bit in the latest survey. They could weaken more in the short term, but when you look at the medium term, companies are still quite optimistic.