Australia: Business confidence drops to zero in February
March 10, 2015
The business sentiment index published by the National Australia Bank (NAB) dropped from 3 points in January to zero points in February. The indicator is now exactly at the 0-point threshold, above which Australian businesses are defined as optimistic regarding economic conditions in the coming months.
According to the NAB, February’s decline was mainly driven by a deterioration in the mining sector. As the Bank pointed out, “mining dropped sharply in line with weaker commodity markets and less favorable movements in the AUD.” Conversely, confidence among manufacturing and construction sectors increased, partially offsetting the bad performance in the mining category.
Author: Cecilia Simkievich, Economist