Australia: Business confidence doubles in March
April 12, 2016
The business confidence index published by the National Australia Bank (NAB) jumped form three points in February to six points in March. The result puts the indicator further above the 0-point threshold, which means that Australian businesses are relatively more optimistic regarding economic conditions in the coming months. The jump also puts the indicator in line with its long-run average.
The NAB mentioned that business confidence is strengthening as concerns over volatility in global financial markets have fallen since the start of the year. Confidence was up, or steady, across most industries apart from the mining sector. It also noted that the confidence spread between the least and the most confident industries narrowed. Overall the report was quite positive as the NAB elaborated that “the lift in business confidence suggests a lower risk of contagion from global uncertainty, but also provides some assurance that gains in conditions will be sustainable.”
Author: Robert Hill, Economist