Australia's current economic outlook is mixed, as the consumer confidence index dropped, while the business confidence index rose.

The latest ANZ-Roy Morgan consumer confidence poll showed that overall consumer confidence fell by 4 percent, after reaching five-month high only a week ago.

However, the business conditions index released by the National Australia Bank (NAB) reached a nine-and-a-half year high for the month of July, with this survey being conducted on businesses, as opposed to everyday Australians.

Craig James, chief economist at CommSec told Xinhua that he believes that the results from the business survey in particular are encouraging, and added that the global economy has improved.

"Interest rates are low, wage pressures are contained and consumers are spending. So business conditions are the best in almost a decade. The only real negative has been the recent appreciation of the Aussie dollar," James said.

"Businesses say operating conditions haven't been better for around a decade. And despite a firmer dollar, confidence levels are also well above long-term averages."

The economist pointed to the containment of inflation as another good indicator of the performance of the Australian economy, and played down taking too much of a negative outlook on the results of the consumer confidence survey.

"Consumer confidence continues to bounce around from week-to-week. But in trend terms, people are feeling alright, with the higher Aussie dollar a key factor brightening spirits," James said.

"The average person wouldn't remember much economic news each week, although they would tend to remember changes in the Aussie dollar and the petrol price. And the lower petrol price and higher Aussie dollar are supporting confidence and spending."

There was some downside in the current business conditions according to the survey, with the report from the NAB highlighting a few sectors that are potentially on the downtake in the Australian economy.

"All industries are reporting positive business conditions in trend terms, although following the recent deterioration, mining and retail have both dipped and are close to moving back into negative territory." the NAB said.

In terms of the outlook for the Australian economy, James remained positively upbeat about the ongoing financial performance locally, and the opportunities for investors.

"The situation is akin to economic nirvana solid business conditions but with few signs of inflation emerging."