Business confidence and optimism for an economic recovery in Australia is sitting above the average, according to NAB’s Monthly Business Survey.

The survey found business confidence rose by 5 points to 10 points in January, while business conditions fell back to 7 points after a strong sales month in December.

“Business started the year on a more optimistic note, even as conditions eased from the strength we saw in December. Importantly, employment conditions remain in positive territory – so overall businesses are still expanding their workforce,” said NAB group chief economist Alan Oster.

“The decline in conditions was broad-based across industries, except for a small improvement in recreation & personal services, which continues to make small gains as restrictions ease.

Overall, in trend terms conditions remain strongest in retail and weakest in construction followed by personal services.”