So what's BHP Billiton's outlook on the world economy and commodity markets.

The upshot is that the company is more confident than it was a year or six months ago, but cost pressures remain a concern.

Here's what it said in yesterday's profit announcement.

"Industry wide cost pressures are being experienced across a broad range of projects and reflect stronger producer currencies, particularly in Australia, as well as underlying inflation on raw material and labour costs.

"Inflationary pressure on input costs across all businesses had an unfavourable impact on Underlying EBIT of US$283 million. The effect was most evident in Australia and South Africa.