SYDNEY, July 10 (Reuters) - An index of Australian business conditions pointed to continued strength in sales and profits in June, though hiring intentions softened for a second month, a survey showed on Tuesday.
The National Australia Bank's NAB.AX index of business conditions rose 1 point to +15 in June, well above the long-run average of +5.5.
The survey's measure of profitability gained 5 points to +17 in June, while its sales index firmed 3 points to an historically high +23.
Its employment index slipped 4 points to +53, while the often volatile measure of business confidence eased a point to +5.
Conditions improved in manufacturing, construction, wholesale and financial, property & business services. These gains were offset by a sharp pullback in the mining industry, while transport & utilities and recreational & personal services also fell.
"Conditions remain well above average after increasing in early 2018, with the strength spread across most industries," said NAB group chief economist Alan Oster.
"While forward looking indicators have weakened a little, they still point to favourable business conditions for the rest of 2018."
The Reserve Bank of Australia (RBA) has repeatedly highlighted the strength in business conditions as it forecast economic growth would top 3 percent this year and next.
The NAB survey found little evidence of faster inflation with retail prices flat and labour costs around their average level of the past year.