Australia: Business confidence in August continues to weaken
September 8, 2015
The business sentiment index published by the National Australia Bank (NAB) fell from four points in July to one point in August, marking the lowest reading in six months. Despite the deterioration, 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, concerns over external risks persist, including China’s slowdown and financial market volatility. Most industries saw confidence weaken; however, the mining and construction industries saw a modest improvement relative to last month’s deterioration. The Bank noted that it expected lower confidence levels to continue, stating that, “ongoing uncertainty abroad (particularly in China) may see confidence remain under pressure.”
Author: Robert Hill, Economist