CANBERRA, Sep. 8, 2009 (Xinhua News Agency) -- Business confidence in Australia has recorded its highest level since October 2003 as a positive sign the economy is strengthening.

The National Australia Bank (OOTC:NABZY) business survey released on Tuesday showed its confidence index jumped a further eight points in August, for a total gain of 50 points since January.

Meanwhile, the latest Dun and Bradstreet (NYSE:DNB) business expectations survey found 46 percent of respondents had forecast their sales would increase in the December quarter. The Australian federal government was quick to claim credit for the lift in confidence through its economic stimulus packages, saying it was not time to wind back the measures.

"This hasn't simply materialized out of thin air. It has been the construct in part of government policy acting through stimulus in the economy," Australian Prime Minister Kevin Rudd told parliament.

However, Australian Opposition Leader Malcolm Turnbull disagreed, saying the economy was coping with the global recession because of the strong position left by the former coalition government and continuing strong demand for resources by China.