Australia: Business confidence inches up in November
December 19, 2016
The business confidence index published by the National Australia Bank (NAB) inched up to 5 points in November, up from 4 points in October. The indicator moved closer to its long-term average of 6 points and further above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, business confidence was resilient despite continued moderation in economic activity in the non-mining sector. Business conditions fell again in November, dropping below its long-term average for the first time in 18 months. The fall in business conditions was due to continued declines in the retail and transport sectors. On the broader implications for the economy, the NAB commented that it expects “to see a fair degree of ‘bounce-back’ next quarter, before the economy resumes its relatively subdued growth track, characterised by muted domestic demand.”
Author: Christopher Mc Innes, Economist