Australia: Business confidence eases in July
August 9, 2016
The business confidence index published by the National Australia Bank (NAB) fell from five points in June to four points in July. The indicator remains above the 0-point threshold, which means that Australian businesses are still optimistic regarding economic conditions in the coming months. The index remains below the long-term average of broadly six points.
According to the NAB, business confidence was resilient despite strong headwinds such as Brexit and the Australian federal elections. Business conditions recorded a slight fall but remained strong and above their long term trend. The situation was mixed across the economy with most services industries posting strong performances. The transport and wholesale industries, on the other hand, suffered steep deteriorations. Regarding the broader picture, the NAB stated that, “while the Survey points to a reasonably upbeat outlook for the near to medium-term, longer term risks are becoming increasingly apparent, particularly going into 2018 as resource exports start to level off and dwelling construction turns negative.”
Author: Christopher Mc Innes, Economist