Australia: Business confidence falls in December
January 25, 2016
The business sentiment index published by the National Australia Bank (NAB) fell from five points in November to three points in December. Despite of the monthly decrease, the indicator is still above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
Although the index weakened, The NAB felt that the decrease was not significant enough to show a fundamental deterioration in business confidence. The Bank elaborated that external conditions, including the slowdown in China and a wider pessimistic outlook of the global economy, weighed on business confidence in December. However, the NAB indicated that the situation could have been worse, stating, “business confidence eased back a little in the month, but held up quite well in light of large declines in equity markets and oil prices – triggered concerns over the global economic outlook. It appears as though positive business conditions are (for now) buffering sentiment from these market fluctuations.”
Author: Robert Hill, Economist