Robust sales and encouraging profits resulted to better business conditions in the month of June as companies gained steadier outlook in the same month, that according to the latest survey of the National Australia Bank (NAB) released on Wednesday.

The NAB report said that business conditions increased by two points to eight index points in June, stressing that "business conditions moved higher on the back of better performances in trading, specifically in mining while profitability also improved."

It also showed that trading sub-index spiked by four points to plus 12 points, pointing to an improved profitability sub-index which jumped by four points to plus five points.

NAB said that the resource industry turned in a remarkable performance as it "recorded extremely large increases in trading conditions, profitability and employment, and mining now has by far the strongest index levels in three components."

The report showed that trading environments steadied in constructions and retail sectors though declines were seen in the manufacturing, recreation and personal services industries while overall, the retail sector was identified as the weakest industry in spite of the gains it achieved in June.

According to NAB, the resource industry saw the steepest decline in business confidence in the month notwithstanding the solid conditions enjoyed by mining companies as miners pulled down the overall confidence index since the survey was conducted two days prior to the announced revision of the resource rent tax by the Gillard government.

The NAB survey said that overall business confidence slid by one point to plus four points in June, occupying a much lower rung from its usual average performance of plus seven points.

Among the country's states and territories, the report said that Western Australia and Queensland came out as the most confident states in the month while South Australia turned in the weakest confidence index points from mainland states.

NAB predicted that the country's economic growth should maintain its current pace while Australia's gross domestic product (GDP) would expand by 2.75 percent this year and improved to 3.5 percent by next year, and these were anchored on untouched Reserve Bank of Australia (RBA) monetary policy which should last until the end of the year.

The bank, however, said that the RBA would eventually effect a cash rate of 5.0 percent by November and December as it projected that jobless rate would dip from the 5.1 percent posted in June this year to 4.75 percent by the year's end, with further declines reaching 4.5 percent by middle of next year.