Australia: Business confidence falls in October
November 8, 2016
The business confidence index published by the National Australia Bank (NAB) fell to 4 points in October, down from 6 points in September. The indicator fell below its long term average of 6 points but remained above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, this month’s index reading suggests a moderation in economic activity in the non-mining sector. Business conditions fell in October but remained above their long-term trend. The fall in business conditions was due to a pronounced decline in the service industry, while retail conditions improved. On the broader implications for the economy, the NAB commented that, beyond the near-term, impetus from the growth drivers of housing, commodities and retail will fade, “which will see the economy slow into 2018.”
Author: Christopher Mc Innes, Economist