Australia: Business confidence picks up in August
September 13, 2016
The business confidence index published by the National Australia Bank (NAB) increased from 4 points in July to 6 points in August. The indicator moved further above the 0-point threshold, which means that Australian businesses are more optimistic regarding economic conditions in the coming months. This month’s reading is in line with the long term average of the index.
According to the NAB, business confidence remained resilient in the face of strong headwinds at home and abroad. Despite this, business conditions continued their mild slide in August and reached their lowest point since the beginning of the year, while still sitting above their long term trend. Business conditions were mostly buoyant in the services and construction industries. Conditions in wholesale and retail trade were more subdued, however. Regarding the broader picture, the NAB stated that, “[the survey] points to a patchy, but sustained, improvement in the non-mining economy, with the major services and construction leading the way.”
Author: Christopher Mc Innes, Economist