Australia: Business confidence falls in October
November 10, 2015
The business sentiment index published by the National Australia Bank (NAB) fell from five points September to two points in October. Despite the decline, the indicator is still above the 0-point threshold, meaning that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, the index is indicative of a recovery in the non-mining sector. Australia’s economy was impacted adversely by a shift in global commodity price dynamics as demand from China and other economies slows. November’s business confidence result shows that Australia’s economy is adapting, as the service sector has reported more positive conditions than other sectors. The NAB elaborated that “better business conditions are not being felt uniformly across the economy, as industries that are better positioned to benefit from lower interest rates (especially those closely tied to residential real estate) and the AUD remain the clear outperformers – personal and business services are the main standouts.”
Author: Robert Hill, Economist