Manufacturers have got off to a buoyant start to the year, aided by home building and renovation activity, a lower Australian dollar and a general global strengthening in the sector.
The composite index of the Westpac-Australian Chamber of Commerce and Industry industrial trends survey rose a further 2.5 points in the March quarter to 63.
The index has risen steadily since a dip to 55 points during last year's July election. Anything over 50 points is a sign of expansion.
"Businesses are looking to 2017 to be a positive year for profits, driven by rising turnover and a lower Australian dollar boosting export returns," Westpac senior economist Andrew Hanlan said in a statement on Thursday.
Even so, Mr Hanlan said there were some negatives with mining investment trending lower and consumer spending lacklustre, albeit rebounding late in 2016.
Australian Chamber boss James Pearson said manufacturing businesses were starting the year on a firm foundation.
However, businesses will be looking to the May federal budget to ensure such conditions can be maintained.
"The survey demonstrates that businesses are willing to invest but are looking for further assurances on the economy, which the budget can provide," Australian Chamber boss James Pearson said in a statement.
"This budget needs to future proof Australia against economic shocks from at home and abroad through setting public finances on a path to surplus."
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