Manufacturers are in a positive mood but it is now up to the nation's politicians to keep that confidence up.
That's the view of Australian Chamber of Commerce and Industry boss Kate Carnell after a new survey showed industry has responded well to the federal budget.
This, combined with rising home building activity, low interest rates and an easing dollar, is "creating a virtuous groundswell".
"What business are telling us is they really ... want the Senate to pass the budget, they do want to be confident that this level of improved confidence and improved growth will continue," she told reporters in Canberra on Thursday.
She said businesses spoken to just before the budget were quite negative, but the moment the budget came down business confidence surged.
The ACCI-Westpac industrial trends survey for June quarter showed its composite index rising for a third straight quarter and business expectations pointing to a further strengthening over the next six months.
Westpac senior economist Andrew Hanlan said while consumer spending us flat, the survey shows a positive turning point for investment and employment.
"Jobs growth is going to be robust in the second half the year," he told reporters.
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