Business conditions are at a near three-year high - another sign that further rate cuts from the Reserve Bank of Australia are unlikely.
Business conditions almost caught up with business confidence in December, up seven points to +4 points, according to the National Australia Bank monthly business survey.
Confidence was unchanged at six points.
The surprise jump was supported by low interest rates, higher asset prices and the lower Australian dollar, NAB economists said.
"More positive economic indicators for Australia hold out hope that a turning point may be near," the economists said.
"Confidence has remained surprisingly elevated following the post-election jump, and could potentially remain at these levels for longer than previously thought given that the conditions index has begun to respond."
HSBC chief economist Paul Bloxham said the rise in business conditions to their highest level since March 2011 provided more evidence that growth was rebalancing in the fourth quarter.
"There are some signs that this was already happening in the fourth-quarter, with the timely indicators of economic conditions - such as retail sales, housing approvals and business conditions - all lifting," he said.
"This is, however, in contrast to the employment data, which was weak.
"We remain of the view that this reflects that the labour market lags the economy and expect employment growth to pick up in early 2014, as improving conditions in the non-mining sectors lead to more hiring.
"We continue to expect that the RBA's easing phase is done."
UBS economists said the survey would likely see the RBA wind back some of their easing bias when they meet on February 4.
"While time will tell whether the jump in conditions is sustained, today's survey adds evidence the domestic economy is stabilising, and that the RBA is likely to sound 'less easy' at their upcoming meeting."
NAB economists forecast another rate cut in November.
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